// Adidas meets analyst’s Q2 sales & profit forecasts despite supply chain issues affecting US sales
// Revenue increased 4% year-on-year to £5.06bn
// Ecommerce sales increased by 37%
// Operating profit grows 9% £592m
Adidas has met analyst’s sales and profit expectations in its second quarter, despite supply chain issues interfering with US sales.
The German sports retailer and brand reported a four per cent year-on-year revenue increase to €5.5 billion (£5.06 billion), driven by a 37 per cent increase from ecommerce sales and a 14 per cent increase in sales from China.
Operating profit grew by nine per cent to €643 million (£592 million), as it negotiated better terms with suppliers, sold more high-margin products and scaled back on discounts.
Operating margin rose 11.7 per cent, after an 11.3 per cent rise a year ago.
Meanwhile, reported net income attributable to shareholders rose to €532 million (£490 million) in the second quarter, beating analyst expectations.
Adidas shares rose by 49 per cent on Thursday in early Frankfurt trading.
Adidas chief executive Kasper Rorsted told investors in March that the retailer’s half-year performance could have been even better had the group not faced supply shortages in the US.
As a result of supply chain issues, Adidas has not been able to meet the higher-than expected demand for mid-priced apparel in the US.
In March, the business forecast a loss of between €200 million (£184 million) and €400 million (£368 million) in sales, equating to one per cent to two per cent of revenue this year.
“We remain confident about the sequential revenue acceleration in the second half of the year,” Rorsted said in a statement on Thursday.
Adidas currently expects a full-year growth of five to eight per cent.