Adidas increases full-year guidance after better than expected Q3
Within its guidance, the company assumes the sale of the remaining Yeezy inventory during the remainder of the year to occur on average at cost
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Adidas has revealed that it has increased its full-year guidance following a better than expected performance in Q3.
Adidas now expects its full-year revenues to increase by 10% on a currency neutral basis, up from high single digits, after a better than expected Q3.
Alongside this, the company now expects its operating profit to reach around €1.2bn (£1bn), up from around €1bn (£840m).
It comes as the retailer saw its revenues increase 10% on a currency neutral basis in Q3, and 7% up to €6.44bn (£5.39bn) on a strictly euros basis.
Furthermore, excluding Yeezy sales in both years, it saw its currency-neutral revenues increase 14% during the quarter.
The company’s third quarter operating profit increased to €598m (£500m) including a contribution of around €50m (£41.9m) from the sale of parts of the remaining Yeezy inventory.
Within its guidance, the company assumes the sale of the remaining Yeezy inventory during the remainder of the year to occur on average at cost.
This would result in additional sales of around €50m (£41.9m) and no further profit contribution in the fourth quarter.
