Adidas raises full year forecast
Adidas has increased its full year outlook after revenues in its second quarter grew by 51% to €5.077 billion.
The company said the uplift was driven by increases in all market segments except Greater China. Revenues in Latin America more than tripled during the quarter while sales in Asia-Pacific grew by 66% despite the negative impact of extended Covid-19 lockdowns in the region. In addition, currency-neutral sales in EMEA and North America almost doubled.
Adidas now expects currency-neutral sales to increase at a rate of up to 20% year-on-year in 2021, driven by strong double-digit improvements in all markets. This new outlook reflects sales growth of up to 7% in the second half of the year compared to the 2020 level, In addition, net income from continuing operations is now projected to increase to between €1.4 billion and €1.5 billion compared to a previous forecast of €1.25 billion to €1.45 billion.
Adidas chief executive Kasper Rorsted said: “With sports taking back centre stage this summer, we delivered a very successful quarter. Driven by the strength of our brand and better than expected demand for our products, we saw an acceleration in our top- and bottom-line.
“Sales in our strategic growth markets EMEA and North America almost doubled. Revenues in our key categories Football and Outdoor even grew at triple-digit rates. The share of full-price sales increased strongly, fuelling exceptional profitability improvements. This momentum gives us all the confidence to increase our full-year outlook despite the external challenges that our industry continues to face.”
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