Adidas AG shares rose after the German sneaker maker increased its revenue and profit forecasts, helped by strong sportswear sales and a brand streamlining that includes a disposal of the CCM hockey business.
The company expects net income from continuing operations to rise 26 percent to 28 percent for the full year, up from as much as 15 percent, it said late Thursday. The shares climbed as much as 7.4 percent in early Frankfurt trading on Friday.
Adidas is benefiting from booming demand for retro shoes and a steady stream of new models that made the brand a hot commodity in the U.S. The German company is also capitalizing on a growing middle class in China, which is adopting a more active lifestyle, and strong demand for more fashionable sportswear worn outside of gyms.
Under the new forecast, net income from continuing operations will increase to 1.36 billion euros ($1.59 billion) to 1.39 billion euros for the full year, Adidas said. Sales, excluding currency swings, are expected to grow 17 percent to 19 percent, up from as much as 14 percent.
Adidas will report detailed financial results Aug. 3.
Trader-G.Bozhidarov
Sourse: Bloomberg Pro Terminal
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.