German sport kits giants Adidas AG, in its first-quarter financial report posted 29% rise in net income attributable to shareholders to EUR455 million compared to EUR351 million reported last year.
It’s Earnings per share increased by 30.4% to EUR2.23 in 2017 against EUR 1.71 recorded in the previous year. The company’s gross margin decreased 0.2 points to 49.2% as a result of anticipated FX headwind, while operating margin improved 0.9pp to 11.1%.
The company expects net income from continuing operations to increase at a rate between 18% and 20% to a level between EUR1.20 billion and EUR1.225 billion, compared to previous year’s EUR1.019 billion. Operating profit is expected to grow between 18% and 20%.
For 2017, adidas continues to expect sales to increase at a rate between 11% and 13% on a currency-neutral basis driven by double-digit growth in Western Europe, North America and Greater China.
The company’s gross margin is forecasted to increase up to 0.5 percentage points to a level of up to 49.1%. The operating margin is forecasted to improve between 0.6 and 0.8 percentage points to a level between 8.3% and 8.5%.
The brand said its Revenue growth was driven by double-digit increases in the running and outdoor categories as well as at adidas Originals and adidas neo.
Adidas CEO Kasper Rorsted said, “We had a strong start into the year, with continued sales and earnings momentum.Our major brands adidas and Reebok as well as all of our key markets posted double-digit sales increases… Building on this performance, we are confirming our full-year guidance. We aim to deliver double-digit revenue growth and an over-proportionate profitability increase in 2017 yet again.”