Adidas Second Quarter Sales Grew 13% Year-On-Year

Germany

The second quarter profit target is raised today, and the net profit of continuing business in the second quarter increased 99% to 291 million euros, and the basic profit per share rose 1 times to 1.45 euros.

The company pointed out that sales in the second quarter increased by 13% to 4 billion 400 million euros, and operating profit rose 77% to 414 million euros.

In addition, the company also raised its annual performance forecast for 2016. It is estimated that the net profit of the continuing business will rise 35% to 39% over the same period, that is, between 975 million and 1 billion euros.

Driven by the strong performance of the classic Stan Smith and the newly launched NMD series shoes, Adidas ushered in a new growth period in the first quarter, with double-digit growth in both sales and net profits.

Over the past year, the company's share price has surged 130%, far outperforming Nike and Under Armour.

Some analysts believe that the leading edge of Nike has been weakened, which may give Adidas the hope of recovery, analysts believe.

The profit margin is likely to have peaked, and the potential of the brand is also empty.

According to the fourth quarter earnings report issued by Nike, the total revenue in the fourth quarter was $8 billion 240 million, which was less than the $8 billion 260 million expected by Wall Street. This is the two quarter of Nike's revenue which is not expected.

Adidas official said that the success of the company was attributed to the internal restructuring of the brand, which directly affected sales. The company was also pressed by the two major sports brands of the United States, Nike and Under Armour, to compete for market share. In 2015, Adidas realized that the company could not sit still and made a five year plan, which included making robots and paying attention to the endorsement of athletes.

Adidas Eric Liedtke, chief marketing officer, stressed that the brand must reset a new mode of operation, Adidas is a large company, the brand was too concerned about the internal process and gradually lost.

Authorities believe that the German sports brand retailer is becoming cool now.

Earlier, Adidas and Kanye West launched Yeezy sports shoes successfully. Many analysts believe that after launching Boost running shoes, Adidas has redefined the original understanding of running shoes in the minds of consumers and further promoted the company's sales performance.

Mark King, President of Adidas North America, said that everything is possible because the company is abandoning its old and outdated ways to accelerate its progress.

According to the first quarter performance data released by Adidas, group net profit surged 38% to 350 million euros in the quarter ended March 31st, sales grew 17% to 4 billion 800 million euros, operating profit increased 35% to 490 million euros.