Adidas shares rise after surprise guidance increase
Adidas shares rose 2.4% after it raised its annual operating profit outlook to €2.5 billion from €2.3 billion, including a one-off €200 million US tariff refund and a planned €100 million reinvestment.
1. Higher profit outlook
Adidas raised its full-year operating profit forecast after preliminary third-quarter earnings beat expectations. The company now expects €2.5 billion, including a €200 million one-off US tariff refund and a planned €100 million reinvestment in the fourth quarter.
2. Earnings beat estimates
Third-quarter operating profit, including the tariff refund, rose 37% to €1.01 billion, above analysts’ consensus estimate of €742 million. Excluding the refund, operating profit was 9% higher than expectations, J.P. Morgan analysts said.
3. Trading challenges
CEO Bjorn Gulden said the footwear lifestyle business faced challenges from excess inventory and discounting, which he said would soon normalise. Adidas shares rose 2.4% in early trade. The company is due to report third-quarter results on October 29.
