Adidas Reports Strong Q3 Sales, 6% Growth Year Over Year
Adidas reported that its Q3 sales have "increased by 6% versus the same period last year, stripping out currency movements," according to Carol Ryan of the WALL STREET JOURNAL. Demand for the brand in Q3 "picked up in North America, where Adidas is growing at more than twice the rate" of Nike. Adidas' domestic business "also improved: European sales increased by 3%" in Q3, compared to a "flat performance" in Q2. The company's "new management team in place since the middle of last year is beginning to turn the unit around." Steady growth will help CEO Kasper Rorsted achieve his '20 "target of an 11.5% operating margin and average annual sales growth of 10% to 12%" between '15 and '20. Adidas' three "strategic markets -- China, the U.S. and e-commerce -- are all doing well." However, Adidas is "losing market share in Europe, where Nike is growing sales four times faster." But Adidas should be "helped" by the UEFA Euro '20 soccer tournament, which will "boost demand for football kits" (WALL STREET JOURNAL, 11/7).
COMING TO AMERICA: FOOTWEAR NEWS' Samantha McDonald noted Adidas has "shifted focus" to the U.S. in recent years, "forging partnerships with A-list celebrities including Kanye West and Beyonce." The brand also has "ramped up its fashion athletic offerings." Adidas also anticipates the "release of more colorways of its top-selling Continental 80 lifestyle sneaker and celebrating the 50th anniversary of its iconic Superstar design" in December (FOOTWEARNEWS.com, 11/6).