Adidas books profit & sales uptick

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Adidas update

Adidas has recorded an 18.6 per cent increase in net income for its first quarter of the year, compared with same period in 2017.

The sportswear retailer’s net income surged to €540 million (£476 million) in 2018, boosted by €5.5 billion (£4.84 billion) in quarterly sales.

The German brand also enjoyed an operating gross margins uptick of 1.8 per cent to 51.1 per cent, while operating margins increased by 1.8 per cent to 13.4 per cent.

Online sales was the fastest-growing channel, with Adidas recording a 27 per cent year-on-year rise in volumes for the quarter.

The company’s North America market was the star performer, with 21 per cent growth, followed by Asia-Pacific which grew 15 per cent.

Revenues in Western Europe only grew by five per cent, but this was in line with market expectations.

“Our high-quality top-line growth was driven by our strategic focus areas North America, Greater China and ecommerce,” Adidas chief executive Kasper Rorsted said.

“At the same time, we managed to grow the bottom line significantly faster than the top line while continuing to invest into creating brand desire.”

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