adidas: a false start as forecasts disappoint
(CercleFinance.com) - adidas unveiled quarterly results on Friday that were slightly better than expected, although its forecasts disappointed analysts, causing its share price to fall by over 5% in early trading in Frankfurt.
The German sports equipment maker said this morning that it now expects sales growth, excluding currency effects, to be at the lower end of its target range of +11% to +13% for this year.
It justifies its caution by the "severe impact" on its business of the recent lockdowns in China to contain the spread of Covid.
Net profit from continuing operations is also expected to be at the lower end of its annual range of 1.8-1.9 billion euros.
Meanwhile, Q1 sales came in at 5.3 billion euros, 2% above the consensus.
In the wake of this publication, the adidas share lost more than 5% on Friday on the DAX index, bringing its decline since the beginning of the year to almost 30%.
Analysts at RBC - who have an "outperform" rating on the stock - believe, however, that the gradual improvement in the situation in China and the organisation of the World Cup in Qatar should improve the group's growth profile in the coming months and support the share price.
Copyright (c) 2022 CercleFinance.com. All rights reserved.
The German sports equipment maker said this morning that it now expects sales growth, excluding currency effects, to be at the lower end of its target range of +11% to +13% for this year.
It justifies its caution by the "severe impact" on its business of the recent lockdowns in China to contain the spread of Covid.
Net profit from continuing operations is also expected to be at the lower end of its annual range of 1.8-1.9 billion euros.
Meanwhile, Q1 sales came in at 5.3 billion euros, 2% above the consensus.
In the wake of this publication, the adidas share lost more than 5% on Friday on the DAX index, bringing its decline since the beginning of the year to almost 30%.
Analysts at RBC - who have an "outperform" rating on the stock - believe, however, that the gradual improvement in the situation in China and the organisation of the World Cup in Qatar should improve the group's growth profile in the coming months and support the share price.
Copyright (c) 2022 CercleFinance.com. All rights reserved.