Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Xetra  >  Adidas AG    ADS   DE000A1EWWW0

ADIDAS AG

(ADS)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Adidas shares hit record as ecommerce boosts profits

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/03/2019 | 06:21am EDT
FILE PHOTO: Logo of Adidas logo is seen on ta store in Yerevan

BERLIN (Reuters) - Adidas reported a forecast-beating rise in quarterly profits on Friday, helped by booming online sales, and said it hoped to fix supply chain problems in the North American market and revive growth in Europe by the end of the year.

Shares in the German sportswear maker, which have risen by a quarter this year, jumped 7 percent to a new record high, with the sector also buoyed by Under Armour Inc raising its full-year earnings forecast on Thursday.

The group's profitability has long lagged that of bigger rival Nike, but has improved under Chief Executive Kasper Rorsted, who has focused on expanding in North America and Asia and pushing online sales, where margins are higher than wholesale.

In the first quarter, Adidas said its operating margin rose 1.4 percentage points to 14.9 percent, pulling ahead of Nike which recorded an operating margin of 13.5 percent for the December to February period.

"Earnings are much better than guided for the full year – leaving the door open for margin guidance upgrades in the course of the year 2019," said Baader Helvea analyst Volker Bosse, who rates the stock "hold".

Adidas is chipping away at Nike's dominance of the U.S. market, pushing retro styles that have proved more popular than Nike's basketball shoes, and teaming up with celebrities such as Kanye West, whose Yeezy line has driven recent strong growth.

Adidas announced last month it is partnering with singer Beyonce, which Rorsted said on Friday would have a "tremendous impact", noting that the deal generated 1 billion online views, with the first products due for launch later in 2019.

ONLINE BOOM

First-quarter profitability was helped by lower sourcing and marketing costs, favourable currency developments as well as selling more higher priced products and the expansion of online, with ecommerce sales up 40 percent in the quarter.

Rorsted told journalists ecommerce had grown fast in all regions, helped by exclusive launches of new products and the fact the Adidas app has been downloaded 9 million times. He expects online growth to continue at 30-40 percent for years.

Overall, sales growth slowed in the first quarter to a currency-adjusted 4 percent rise to 5.883 billion euros (£5.06 billion), but was still ahead of analyst consensus.

Adidas had already warned in March that supply chain issues would hit sales growth in the first half, citing particular problems meeting North America demand for mid-market clothing.

Adidas said it was working to mitigate the shortages, including using more air freight to ship goods - implying higher logistics costs in the second and third quarters - but Rorsted said the problems should ease by the end of the year.

He also expects a recovery by then in Europe - where revenue fell 3 percent in the first quarter, as Adidas seeks to reduce its reliance on its Originals fashion line and boost sales of sports performance gear, with new product launches.

Sales of soccer jerseys ahead of the 2020 European soccer championship should have their first positive impact in the fourth quarter, Rorsted added.

(Reporting by Emma Thomasson, editing by Riham Alkousaa and Emelia Sithole-Matarise)

By Emma Thomasson

Stocks mentioned in the article
ChangeLast1st jan.
ADIDAS AG -1.03% 278.95 Delayed Quote.52.93%
NIKE -1.02% 86.55 Delayed Quote.16.74%
PUMA 1.01% 60.1 Delayed Quote.40.75%
UNDER ARMOUR -0.07% 26.95 Delayed Quote.52.52%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ADIDAS AG
07/16ADIDAS AG : Disclosure pursuant to Art. 5 Sec. 1 lit. b) and Sec. 3 of the Regul..
EQ
07/10ADIDAS AG : Release according to Article 40, Section 1 of the WpHG [the German S..
EQ
07/10KKR Enters Exclusive Negotiations With GBL for Webhelp Group
DJ
07/09ADIDAS AG : Disclosure pursuant to Art. 5 Sec. 1 lit. b) and Sec. 3 of the Regul..
EQ
07/08ADIDAS AG : Release according to Article 40, Section 1 of the WpHG [the German S..
EQ
07/04ADIDAS AG : Notification and public disclosure of transactions by persons
EQ
07/04ADIDAS AG : Release according to Article 40, Section 1 of the WpHG [the German S..
EQ
07/03ADIDAS : Scores an Own Goal With Arsenal Twitter Campaign -The Guardian
DJ
07/02ADIDAS AG : Disclosure pursuant to Art. 5 Sec. 1 lit. b) and Sec. 3 of the Regul..
EQ
07/01ADIDAS AG : Release according to Article 40, Section 1 of the WpHG [the German S..
EQ
More news
Financials (EUR)
Sales 2019 23 464 M
EBIT 2019 2 723 M
Net income 2019 1 923 M
Finance 2019 1 121 M
Yield 2019 1,40%
P/E ratio 2019 28,5x
P/E ratio 2020 25,4x
EV / Sales2019 2,30x
EV / Sales2020 2,17x
Capitalization 54 979 M
Chart ADIDAS AG
Duration : Period :
adidas AG Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ADIDAS AG
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 35
Average target price 260,26  €
Last Close Price 279,75  €
Spread / Highest target 16,2%
Spread / Average Target -6,97%
Spread / Lowest Target -35,7%
EPS Revisions
Managers
NameTitle
Kasper Bo Rørsted Chief Executive Officer
Igor Landau Chairman-Supervisory Board
Harm Ohlmeyer Chief Financial Officer
Willi Schwerdtle Deputy Chairman-Supervisory Board
Wolfgang Jäger Member-Supervisory Board
Sector and Competitors
1st jan.Capitalization (M$)
ADIDAS AG52.93%61 691
NIKE16.74%136 035
ADIDAS AG (ADR)--.--%61 691
ANTA SPORTS PRODUCTS LTD50.00%19 466
PUMA40.75%10 049
SKECHERS USA INC52.21%6 140