adidas: third-quarter net income down, guidance confirmed

(CercleFinance.com) - Europe's biggest sports goods maker adidas reported third-quarter net income that was down slightly, due to increased freight costs and a less favourable pricing mix.


Net income from continuing operations came in below last year's level and decreased 2% in the past quarter, to 644 million euros as the company has introduced IFRS 16, the new financial reporting standard.

In the third quarter, currency-neutral revenues grew 6%, thanks to high-single-digit growth in sport performance, driven by increases in the training, running and outdoor categories, the group said.

For 2019, the company still expects sales to increase at between 5% and 8% on a currency-neutral basis, with a significant sequential top-line acceleration.

Net income from continuing operations is projected to increase to between 1.88 billion and 1.95 billion euros, representing growth of between 10% and 14%.

adidas shares have fallen by up to 3.1% on Wednesday morning, underperforming a 0.2% increase in Germany's blue-chip DAX index.

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