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 : Athleisure wear helps JD Sports defy Britain's retail gloom

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/16/2019 | 06:10am EDT
FILE PHOTO: People pass a JD Sports store in London

(Reuters) - Millennials' fondness for athleisure wear helped retailer JD Sports Fashion defy Britain's retail gloom and beat full-year earnings expectations on Tuesday.

The group's expansion over the past year, with the purchase of U.S.-based Finish Line and smaller rival Footasylum, also bolstered annual profits, sending JD shares to a record high.

Executive Chairman Peter Cowgill said Britain's biggest sportswear retailer had targeted millennials and Generation Z consumers - those born between the mid-1990s and the mid-2000s - who had driven the trend for athleisure, whereby gym clothes have become acceptable at work, school and on social occasions.

"It (athleisure) is becoming far more seamless between sport and leisure, it is a cultural impact," Cowgill told Reuters in a phone interview after the company said headline pretax profit rose 15.5 percent to £355.2 million for its financial year ended Feb. 3.

Britain's retail industry has been hit by weakening consumer spending amid uncertainty over Brexit, higher business costs and a shift to online shopping.

JD, with more than 2,400 stores that sell brands including Nike, Puma and Adidas, has weathered the storm thanks to its international footprint and a strong online presence.

That contrasts with rival Sports Direct, majority owned by billionaire Mike Ashley, who has recently failed in takeover attempts including for Debenhams and Findel.

"JD is not immune to the widely reported challenges to physical retail in the UK with lower footfall on many high streets, malls and retail parks combined with cost challenges," JD Sports said in its results statement.

Still, the owner of Footpatrol and Cloggs did not cut prices over the Christmas period even as other retailers scrambled to attract shoppers through heavy discounts.

CHUNKY SHOES

Cowgill said JD had also benefited from a trend towards more chunky footwear, particularly among women.

Chunky shoes, once considered "dad sneakers", have gained popularity recently after celebrity entrepreneur Kylie Jenner sported them last year in collaboration with Adidas.

JD, which was founded in 1981 with a single store in the northwest of England, reported a 6 percent rise in total like-for-like sales for its financial year through February.

Its shares rose as much as 3.3 percent after the results to a record high of 550 pence. Pretax profit beat a company-supplied analysts' forecast of £349.2 million.

"It's hard to think of such an impressive showing anywhere else in retail and JD's LFL (like-for-like) sales growth and profit delivery is stellar," said Peel Hunt, calling the stock "a clear buy".

Asked if JD had seen any signs of a dip in customer behaviour or spending, Cowgill said "none whatsoever, in fact it has become more positive."

>Graphic - JD Sports overtakes Sports Direct as expansion efforts pay off:

(Reporting by Muvija M in Bengaluru; Editing by Bernard Orr and Susan Fenton)

By Muvija M

Stocks mentioned in the article
ChangeLast1st jan.
ADIDAS AG -0.09% 274.75 Delayed Quote.50.63%
JD SPORTS FASHION PLC 0.43% 695 Delayed Quote.99.25%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ADIDAS AG
09/20Sports Direct says JD Sports probe could have impact for major brands
RE
09/17ADIDAS AG : Release of a capital market information
EQ
09/10JD Sports outperforms struggling UK retail sector
RE
09/10ADIDAS AG : Release of a capital market information
EQ
09/04ADIDAS AG : Notification and public disclosure of transactions by persons
EQ
09/03European fashion brands agree new deal in Bangladesh
RE
09/02ADIDAS AG : Disclosure pursuant to Art. 5 Sec. 1 lit. b) and Sec. 3 of the Regul..
EQ
09/02Major fashion companies to make G7 pledge to help environment
RE
08/30WALL STREET WEEKAHEAD : Retailers in spotlight as tariffs on consumer products k..
RE
08/28Over 200 U.S. footwear companies urge Trump to scrap proposed tariff hike
RE
More news
Financials (EUR)
Sales 2019 23 495 M
EBIT 2019 2 715 M
Net income 2019 1 958 M
Finance 2019 974 M
Yield 2019 1,40%
P/E ratio 2019 28,0x
P/E ratio 2020 25,0x
EV / Sales2019 2,25x
EV / Sales2020 2,09x
Capitalization 53 818 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 36
Average target price 269,99  €
Last Close Price 275,60  €
Spread / Highest target 16,1%
Spread / Average Target -2,04%
Spread / Lowest Target -26,3%
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 AG50.63%59 212
NIKE16.91%135 818
ANTA SPORTS PRODUCTS LTD70.53%22 037
PUMA64.29%11 540
SKECHERS USA INC55.61%5 584
FENG TAY ENTERPRISES CO., LTD.--.--%5 005