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Net income from continuing operations will rise 18 percent to 20 percent to as much as 1.23 billion euros ($1.3 billion), it said.
Profit rose 41 percent in 2016, exceeding 1 billion euros for the first time.
“We are 18 months into our strategy,” Rorsted said at the press conference.
The consensus analyst estimate is 1.15 billion euros.
CEO Kasper Rorsted said focusing on fast-fashion and stripping away non-core businesses like golf and hockey will increase profit more than expected, lifting the shares to a record.
Adidas Just Does it to Nike
Adidas Premium The company now trades at a higher multiple of earnings than rival Nike Source: BloombergRorsted rightly wants to make Adidas more like a fast fashion retailer by cutting the time it takes to get products to market.
Unlike the scene at one of its Kanye West fashion shows, Adidas AG didn’t keep the market cooling its heels for the main event.
Fashion is notoriously fickle, and Adidas has been on the right side of the trends for some time now.
That’s helped Adidas to capture sales in the U.S., where it has a 10 percent share of the market, compared with Nike Inc.’s 45 percent, according to analysts at RBC Capital Markets.
Earnings Run Adidas expects earnings from continuing operations to rise as much as 20 percent Source: Bloomberg/company filingsAdidas is on a tear, and Rorsted now wants to keep up the momentum.
Adidas Should Terrify the Heck Out of Struggling Under Armour and Resurgent Nike Right Now
collected by :Victor Alphen