Sportswear retailer Adidas saw shares dip by 2.3% in early trading today (8 August), despite the company’s operating profit growing 13% to €1.518bn (£1.398bn) in its Q2 results.
In the first half of 2019, revenues increased 4% on a currency-neutral basis, which is in line with the 3% to 4% guidance the company provided at the beginning of the year, in light of the supply chain shortages it has been experiencing following a strong increase in demand for mid-priced apparel.
The retailer also reported reported flat revenues in Europe year-over-year, which were offset by a 6% increase in revenues in North America during the period, reflecting a 5% increase at brand adidas and 10% growth for Reebok.
Additionally, revenues in sport performance declined at a low-single-digit rate as the “non-recurrence” of last year’s FIFA World Cup-related sales led to a strong decrease in the football category.
Adidas CEO Kasper Rorsted said: “We delivered another successful quarter. Sales in our strategic growth areas Greater China and e-commerce continued to increase at a double-digit rate – and so did our bottom line.
“We remain confident about the sequential revenue acceleration in the second half of the year and confirm our top- and bottom-line outlook for 2019.”