In the third quarter, Adidas’ revenues were up 12 per cent. Revenue growth was driven by an increases in distribution channels, with particularly strong support from e-commerce, where revenues grew 39 per cent. In euro terms, sales for the company were up nine per cent in the third quarter.
Gross margin increased 2.4 percentage points to 50.4 per cent. Other operating expenses increased eight per cent. As a percentage of sales, however, other operating expenses decreased 0.1 percentage points to 37.5 per cent. Operating profit increased 35 per cent. Net income from continuing operations was up 35 per cent and basic earnings per share from continuing operations grew 33 per cent. Net income attributable to shareholders increased 36 per cent, resulting in basic earnings per share from continuing and discontinued operations up 34 per cent.
Sales in the football and basketball categories declined. Revenues at Reebok brand grew one per cent. The strategic growth areas - North America, Greater China and e-commerce - were the main drivers of the company’s strong topline performance during the third quarter.
The company expects sales to increase at a rate between 17 per cent and 19 per cent in 2017. Net income from continuing operations is projected to increase at a rate between 26 per cent and 28 per cent.