// Adidas revenues increase by 52% in the second quarter
// The group has increased its top and bottom-line outlook for the rest of the year
Adidas has lifted its 2021 outlook for the second time this year after sales increased by 52 per cent in the second quarter.
In a release, the company said the growth was achieved against the background of extended lockdowns in the Asia-Pacific region, which in combination reduced currency-neutral revenue growth by a low-double-digit rate during the quarter.
“With sports taking back center stage this summer, we delivered a very successful quarter. Driven by the strength of our brand and better-than-expected demand for our products, we saw an acceleration in our top- and bottom-line,” Adidas CEO Kasper Rorsted said.
“This momentum gives us all the confidence to increase our full-year outlook despite the external challenges that our industry continues to face.”
Second quarter sales rose 52 per cent to £4.3 billion while the retailer reported a quarterly operating profit of £461 million, compared to an operating loss of £223 million in the previous year amid forced store closures at the height of the pandemic.
Both revenue and operating profit in the second quarter were better than expected by analysts.
Adidas has now increased its top and bottom line outlook for the remainder of the year and now expects currency-neutral sales to increase at a rate of up to 20 percent in 2021, driven by strong double-digit improvements in all markets.
This new outlook reflects sales growth of up to 7 percent in the second half of the year compared to 2020.
The company’s full-year gross margin forecast continues to be for a level of approximately 52 per cent.
The operating margin is now expected to increase to a level of between 9.5 per cent and 10 per cent while net income from continuing operations is now projected to increase to a level of between £1.1 billion and £1.2 billion compared to previous outlook of £1.06 billion to £1.23 billion.