Retail Trade

Adidas reports profit in Q1

Adidas reports profit in Q1

The company’s gross margin increased 2.1 pp to 51.8 percent. The company’s operating profit grew to a level of 704 million euros and with an increase of 12.3 percentage points to 13.4 percent, the operating margin almost fully recovered to the pre-pandemic level.

The company’s net income from continuing operations increased to 502 million euros, while basic EPS from continuing operations reached 2.60 euros.

Given the healthy brand momentum and stronger-than-expected demand for the brand’s products, the company now expects currency-neutral sales to increase at a high-teens rate in 2021.

In Q2, Adidas forecasts a significant top-line acceleration, with currency-neutral sales expected to increase by around 50 percent.

The company’s full-year gross margin forecast continues to be for a level of around 52 percent, while the operating margin is still expected to increase to a level of between 9 percent and 10 percent.

Net income from continuing operations is projected to increase to a level of between 1.25 billion euros and 1.45 billion euros.

The company said, this growth was achieved against the backdrop of prolonged lockdowns in Europe and industry-wide supply-chain challenges, which reduced currency-neutral revenue growth by a high-single-digit rate during the quarter.

From a channel perspective, the company’s top-line increase was led by improvements in direct-to-consumer (DTC) revenues, which were up 31 percent and accounted for more than one-third of total sales and ecommerce growth of 43%.

The company added that across the company’s three strategic markets, currency-neutral sales expanded by 156% in Greater China and increased by 8 percent in both North America and EMEA.

Revenues were up 18 percent in Latin America and increased 4 percent in Asia-Pacific.

Related posts

UNIQLO OPENS SECOND STORE IN INDIA

Perfect Sourcing Newsdesk

Dubai’s Splash Fashions bets big on ‘digital’ to hasten business in India

Perfect Sourcing Newsdesk

Whoa, Uniqlo parent Fast Retailing’s Operating Profit jumps 33.9%

Leave a Comment