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Adidas reports rise in second-quarter net profit, confirms full-year outlook

Category: Finance,Retail

German sportswear firm Adidas reported stronger-than-anticipated second-quarter net profit on Thursday, with the company saying it remains firmly on track to hit its full-year targets.

Kasper Rorsted, who took over as CEO in 2016 after a series of profit warnings, has sought to place a greater emphasis on profitability at Adidas — although the company still lags behind U.S.-based rival Nike.

Here are the key second-quarter metrics:

  • Net profit: 396 million euros ($459 million) vs. 387 million euros expected, according to Thomson Reuters.
  • Sales: 5.3 billion euros vs. expected 5.2 billion euros, according to Thomson Reuters.

Net profit over the second quarter came in at 396 million euros ($459 million), beating analyst expectations of 387 million euros.

The company also said operating profit rose 17 percent over the second quarter to a level of 592 million euros. Adidas added it remained on course to achieve both its full-year targets for 2018, as well as its long-term targets through to 2020.

Adidas is looking to capitalize on recent momentum in taking market share away from some of its peers in the U.S. — a very competitive market as athletic apparel and shoe retailers try to reach shoppers following a number of bankruptcies by sporting-goods businesses.

At its last earnings release, it reported sales had risen 21 percent in North America during the first three months of the year, with 26 percent revenue growth in China. However, sales in Russia declined 16 percent.

Athletic wear company Under Armour reported stronger-than-anticipated second-quarter revenue late last month, as the company saw international sales surge.

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