Adidas Q2 Profit Surges; Trims FY16 Sales Outlook; Shares Down

(RTTNews) - German multinational sports shoes, clothing and accessories giant Adidas AG (ADDYY.PK, ADDDF.PK) Thursday announced a significant growth in the second-quarter profit as revenues climbed 21 percent on currency neutral basis from the prior year. The company cited strong momentum at adidas and Reebok brands in all markets.

Adidas projected growth in its full-year 2016 net profit. Currency-neutral group sales are now expected to increase at a high teens rate, however, below its earlier outlook. The shares of Adidas fell on Frankfurt exchange.

For the second quarter, Adidas recorded net income attributable to the shareholders to 291 million euros, up 98.6 percent from 146 million euros in the previous year. On a per share basis, earnings doubled to 1.42 euros from 0.72 a year ago.

Net sales increased 13.2 percent to 4.422 billion euros from 3.907 billion euros. On a currency neutral basis, revenues were up 21 percent. Adidas brand was driven by a growth of 25 percent on a currency neutral basis with double digit sales growth, while Reebok grew 7 percent.

North America's growth was 22.6 percent at 788 million euros.

Western Europe reported 26.3 percent growth in sales to 1.214 billion euros, while Greater China had 21.4 percent increase in sales to 685 million. Sales in Russia/CIS and Latin America regions were down 15.9 and 17 percent respectively.

For the full year, the company expects net income in the range of 975 million to 1 billion euros. Currency neutral group sales rate is expected to increase in high teens.

Earlier in April, the Group was looking for sales growth rate of around 15 percent on a currency-neutral basis in 2016.

Herbert Hainer, Adidas Group CEO said, "I am proud to confirm that we are in great shape. 2016 will be a year of records for the adidas Group. But we will not stop there. In the years to come, we will continue to grow across all categories, channels and geographies and drive our profitability to new heights."

The shares are currently trading at 143.6550 euros, down 3.23 percent on Frankfurt exchange.