adidas: shares jump after 2017 results, share buybacks
(CercleFinance.com) - adidas shares are up 7% in Frankfurt this morning after the German sportswear firm reported a strong operational performance for 2017 and initiated a multi-year share buyback program.
The company's operating profit grew 31% to almost 2.1 billion euros last year, on sales that were up 15% at 21.2 billion euros.
Analysts have mentioned results that are "above expectations," particularly thanks to the improvement in the group's gross margin.
Indeed, this increased 1.2 percentage points to 50.4% in 2017, thanks to better pricing and product mix.
Analysts also highlighted a positive guidance for 2018.
The group said it expects sales to increase by around 10% on a currency-neutral basis in 2018, with its gross margin set to increase by up to 0.3 percentage points to around 50.7%.
Also, the company has decided to launch a multi-year share buyback program of up to 3 billion euros in all until 2021. Starting on 22 March, adidas plans to buy back shares worth up to 1 billion euros in 2018.
Unsurprisingly, investors cheered the news this morning, sending the stock up 9.4% to 184.8 euros.
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