Adidas shares are in the red Wednesday, following a positive third-quarter earnings report. The German sports and leisure wear firm also raised its full year 2018 profit guidance. However, it lowered its revenue target amid weaker sales across Europe.
By 1025 BST, Adidas shares were 2.09% lower at €201.60. The stock has been a little mixed in recent weeks.
Adidas Q3 earnings
Earlier Wednesday, Adidas reported its third quarter earnings in which revenues grew 8% to €5.92 billion, compared with a year earlier. Its operating profit climbed 13.2% from €795 million in Q3 2017, to €901 million in Q3 2018.
The sportswear brand’s net profits, meanwhile, rose 25.1% to €659 million in the third quarter, from the same period a year earlier.
“We delivered high-quality growth again in Q3,” said Adidas CEO Kasper Rorsted. “The top-line expansion was driven by double-digit increases across our strategic growth areas North America, Greater China and e-commerce.”
On a regional level, sales in north America grew 15.5% and were also up 13.8% in the Asia-Pacific region. However, sales across Western Europe slipped 1.3%.
“At the same time, we achieved strong profitability improvements despite a significant increase in marketing investments and severe currency headwinds. With these results, we are confident to reach a higher-than-expected profitability level in 2018 and remain firmly on track to achieve our long-term targets until 2020,” Rorsted added.
Following the upbeat third quarter performance, Adidas has raised its profit guidance for the full year 2018. It now anticipates net profit from continuing operations, to grow between 16-20% to €1.66 - €1.72 billion. That’s up from its previous outlook for net profit growth of 13-17%.
However, due to a weaker-than-expected performance across Western Europe, Adidas has lowered its total revenue forecast to growth of 8-9%, down from around 10%, previously.
In addition, the sportswear manufacturer anticipates basic EPS from continuing operations to grow between 15-19%, up from a previous view of 12-16%.