Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Xetra  >  Adidas AG    ADS   DE000A1EWWW0


News SummaryMost relevantAll newsSector newsTweets 

Adidas Raises Guidance As Profit Beats Expectations

share with twitter share with LinkedIn share with facebook
share via e-mail
04/30/2012 | 08:39am CEST

German sportswear and equipment maker Adidas AG (>> adidas AG) Monday raised its guidance for the year, after above-consensus earnings in the first quarter, but cautioned that irregularities at its Reebok India Company may weigh slightly on earnings.

In a preliminary statement, Adidas said net profit jumped 38% in the first quarter to EUR289 million, primarily due to stronger than anticipated growth in China and Japan as well as TaylorMade-adidas Golf sales, and benefited from lower expenses and a lower tax rate, Adidas said. The figure is well above the EUR237 million average forecast in poll of analysts by Dow Jones.

Group operating profit in the first quarter was up 30% to EUR409 million, while revenue jumped 14% on a constant currency basis to EUR3.8 billion, above expectations of EUR3.64 billion.

Adidas, the world's No. 2 maker of sports apparel after Nike Inc. (NKE), raised guidance, saying net profit is likely to rise by 12%-17% in 2012, compared with previous forecasts of 10%-15%. Group sales are likely to rise nearly 10% on a constant currency basis, up from growth in the mid-to-high single-digit percentage range.

Still, Adidas's gross margin--a measure of what it makes on product sales--fell for the third consecutive quarter to 47.7% from 48.4% in the first quarter of 2011.

Higher input costs--cotton, rubber and the rising cost of labor in China--have also eaten into the margins of Adidas's competitors. Last week, Puma SE (>> Puma AG Rudolf Dassler Sport) said its gross margin fell to 51.2% from 52.4% in the first quarter due to input price pressure.

For the rest of 2012, Adidas is banking on major sporting events like the London Olympics and the UEFA European Championship soccer tournament to drive sales. It also expects to benefit from a high exposure to fast-growing emerging markets, where rising incomes are pushing up demand for branded goods and clothing.

The company also said irregularities at its Reebok India Company will likely result in a pretax charge of up to EUR125 million, and may require the company to restate financial statements from last year.

"Management assures its stakeholders that it has, and will continue to, vigorously pursue a course of action to protect the Group's interests, which has already resulted in the appointment of a new local leadership team in India at the end of March," Adidas said in a statement.

Adidas said it will continue the restructuring of business activities in India with changes to commercial business practices, that may lead to an additional one-time charge of EUR70 million.

Over the past 12 months, Adidas shares have gained about 18% in value, outperforming the Euro Stoxx Consumer Goods index, which has gained 0.1%. Its shares closed Friday at EUR59.82.

-By Harriet Torry and Monica Houston-Waesch, Dow Jones Newswires; 49-69-29725-504; [email protected]

Stocks mentioned in the article : adidas AG, Puma AG Rudolf Dassler Sport
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on ADIDAS AG
05/19 ADIDAS : appoints new Managing Directors for Western Europe and Emerging Markets
05/18 ADIDAS : Appoints Managing Directors For Western Europe And Emerging Markets
05/17 ADIDAS : appoints new Managing Directors for Western Europe and Emerging Markets
05/14DJYour Shoes Will Be Printed Shortly
05/12 ADIDAS : Publication pursuant to § 30b WpHG
05/12 ADIDAS AG : ex-dividend day for annual dividend
05/11 ADIDAS : CEO rejects shareholder calls to sell Reebok
05/10DJADIDAS : Sells TaylorMade and Other Golf Brands to KPS for $425 Million -- Updat..
05/10DJADIDAS : Sells TaylorMade and Other Golf Brands to KPS for $425 Million
05/10 Adidas sells golf unit Taylormade to buyout group KPS
More news
Sector news : Footwear - NEC
05/23DJMARKET SNAPSHOT : S&P 500, Nasdaq Hover Near Records As Stocks Edge Higher
05/10 Adidas sells golf unit Taylormade to buyout group KPS
05/06DJNIKE : Marathon Stunt Fails to Break Two-Hour Barrier
04/25 Puma racing to keep up with demand for popular shoes
04/03 PUMA RUDOLF DASSLER SPORT : signs sponsor deal with Borussia Monchengladbach
More sector news : Footwear - NEC
News from SeekingAlpha
05/25 SKECHERS : On Sale... Growth Potentials At A Discounted Price Of At Least 20%
05/25 14 Stocks For 2017 And Beyond - May Update
05/24 UNDER ARMOUR : A Case Of Market Inefficiency?
05/24 These 'Damaged Goods' Can Pay Handsomely Over Time
05/23 NIKE : Still The Best Bet In The Industry, At An Attractive Entry Point
Financials (€)
Sales 2017 21 742 M
EBIT 2017 1 824 M
Net income 2017 1 249 M
Debt 2017 237 M
Yield 2017 1,38%
P/E ratio 2017 28,23
P/E ratio 2018 23,60
EV / Sales 2017 1,67x
EV / Sales 2018 1,52x
Capitalization 36 017 M
More Financials
Duration : Period :
adidas AG Technical Analysis Chart | ADS | DE000A1EWWW0 | 4-Traders
Full-screen chart
Technical analysis trends ADIDAS AG
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus HOLD
Number of Analysts 38
Average target price 184 €
Spread / Average Target 6,8%
Consensus details
EPS Revisions
More Estimates Revisions
Kasper Bo Rørsted Chief Executive Officer
Igor Landau Chairman-Supervisory Board
Glenn Bennett Head-Global Operations
Harm Ohlmeyer Chief Financial Officer & Director
Willi Schwerdtle Deputy Chairman-Supervisory Board
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
ADIDAS AG14.65%40 256
TOD'S SPA0.08%2 288
More Results