Adidas Raises Outlook For Profits, Lowers Sales Growth Guidance

Adidas on Wednesday "raised its profit outlook" for the year, even as it "lowered guidance for sales growth," according to Olaf Storbeck of the FINANCIAL TIMES. Adidas "warned investors that full-year sales in Western Europe would be lower than initially expected," pulling down the group’s expected '18 revenue. The rise in total sales compared with last year is likely to be 8-9%, "compared with a previous target" of about 10%. Adidas said that profits for the year are "on track to beat previous expectations, however, with full-year operating profit expected to rise" 12-16%, up from previous guidance for a 9-13% rise. In Q3, operating profit was 13.2% "higher than a year ago," which pushed the operating profit margin to 15.3%, compared with 14% last year (FT, 11/7).