Adidas shares rise after guidance increase following surprise earnings statement
Adidas shares rose almost 3% after the company raised its full-year operating profit outlook to €2.5 billion from €2.3 billion. Third-quarter earnings included a one-off €200 million US tariff refund.
1. Higher profit outlook
Adidas raised its full-year operating profit target to €2.5 billion, from €2.3 billion, after reporting preliminary earnings late Tuesday. The new outlook includes a one-off €200 million US tariff refund in the third quarter and a planned €100 million reinvestment in the fourth quarter.
2. Quarterly results
Third-quarter operating profit including the tariff refund rose 37% to €1.01 billion, beating the analyst consensus of €742 million provided by the company. Excluding the refund, operating profit was 9% higher than expectations, J.P. Morgan analysts said.
3. Analyst and company comments
Metzler analyst Felix Dennl said improved full-price sell-through during the quarter was likely to drive upgrades of about 4% to operating profit expectations. CEO Bjorn Gulden said the footwear lifestyle business faced challenges from excess inventory and discounting, which he expected to normalize.
