on strong ownbrand sales
Last Updated : GMT 12:24:11
Arab Today, arab today
Arab Today, arab today

Adidas profits surge

On strong own-brand sales

Arab Today, arab today

Arab Today, arab today On strong own-brand sales

Adidas bought the US fitnesswear specialists in 2005
Frankfurt - Arab Today

German sportswear giant Adidas on Thursday reported a spike in third-quarter profits powered by strong demand for its own-brand products, as it drafted in Victoria Beckham to help boost its struggling Reebok unit.

The Bavarian company, which sponsors English Premier League giants Manchester United, said net profit soared to 526 million euros ($611 million) between July and September, up 36 percent on the same period last year.

Group revenues grew by nearly nine percent to 5.7 billion euros, driven by brisk online sales in all regions and the success of Adidas' retro-inspired Originals trainers and its adidas neo urban fashion line.

Demand was especially robust in the key markets of China and North America, where sales of the three-striped brand increased by around a third, Adidas said.

Chief executive Kasper Rorsted said he was pleased "with the quality of our growth" as he reaffirmed the group's 2017 outlook.

"We delivered another set of strong results and are fully on track to achieve our ambitious 2017 financial targets," he said in a statement.

Adidas continues to expect group sales to grow by 17 to 19 percent in 2017 to achieve net profit between 1.36 and 1.39 billion euros.

Like its smaller homegrown rival Puma, Adidas has been gaining ground in the US at a time when market leaders Nike and Under Armour are stalling.

"The retail landscape is changing dramatically in the US," Rorsted told reporters in a conference call.

The only major market where Adidas didn't see growth in the third quarter was Russia, with the group blaming a 17-percent decline in sales there on store closures and "ongoing challenging consumer sentiment" in the face of a sluggish economy.

By the end of this year, Adidas will have shuttered 200 stores in Russia, Rorsted said.

- Teaming up with Beckham -

Another cloud came from the group's troubled Reebok brand, which saw sales increase by just one percent over the third quarter.

The US market was particularly disappointing with sales falling by 22 percent.

But Rorsted instead there was life yet in the brand, and pointed to a collaboration announced Wednesday with British fashion designer Victoria Beckham as a sign of Adidas' commitment to Reebok.

"We are very happy and excited about Victoria Beckham joining the Reebok brand," Rorsted said.

"We believe that she will dramatically help us build our female business which is the origin of where Reebok came from."

Adidas bought the US fitnesswear specialists in 2005 in a bid to narrow the gap with its main rival Nike, but Reebok has struggled to impress at the group and is now undergoing a restructuring.

Rorsted said 52 Reebok stores in the US had now closed down as part of the overhaul, close to half the total number. Sixteen more stores will close their doors in the coming months.

Rorsted said he expected the struggling brand to return to growth in the US next year.

"We are satisfied with the progress we are making, but we also know that this is a longer turnaround that we are engaged with," he added.

Like its homegrown rival Puma, Adidas has used high-profile sponsorships and celebrity endorsements from the likes of rap superstar Kanye West and fashion icon Gigi Hadid to boost the visibility of its brand.

The group is sponsoring next year's World Cup in Russia, and has begun unveiling team jerseys in recent days.

Rorsted said he expected sales of World Cup fan t-shirts to contribute to a further pick-up in growth in the final months of the year.

"You will start to see the initial impact of the World Cup already in the fourth quarter," he said.

Investors were unimpressed with Adidas' upbeat results, as the stock lost 3.2 percent to trade at 178.15 euros -- making it one of the worst performers in the DAX index of blue-chip German shares.

Source:AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

on strong ownbrand sales on strong ownbrand sales

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

on strong ownbrand sales on strong ownbrand sales

 



Arab Today, arab today
Arab Today, arab today Skincare PR Performance Full Year 2017

GMT 10:35 2018 Monday ,22 January

Skincare PR Performance Full Year 2017
Arab Today, arab today New hunt for flight MH370 gets under way

GMT 02:36 2018 Wednesday ,24 January

New hunt for flight MH370 gets under way
Arab Today, arab today Modern colorful bedroom renovation

GMT 11:23 2017 Thursday ,21 December

Modern colorful bedroom renovation
Arab Today, arab today France sanctions businesses linked

GMT 01:58 2018 Wednesday ,24 January

France sanctions businesses linked
Arab Today, arab today Turkey detains dozens more

GMT 02:09 2018 Wednesday ,24 January

Turkey detains dozens more
Arab Today, arab today The Rake announces editorial updates

GMT 12:19 2018 Tuesday ,16 January

The Rake announces editorial updates
Arab Today, arab today Europe brings on charm and blue skies

GMT 06:12 2018 Tuesday ,23 January

Europe brings on charm and blue skies
Arab Today, arab today For the Variety of Interior Design Styles

GMT 11:14 2017 Tuesday ,19 December

For the Variety of Interior Design Styles
Arab Today, arab today Puigdemont candidate for Catalan president

GMT 05:31 2018 Tuesday ,23 January

Puigdemont candidate for Catalan president
Arab Today, arab today Amazon to open first cashierless shop

GMT 05:52 2018 Tuesday ,23 January

Amazon to open first cashierless shop

GMT 13:36 2017 Friday ,22 December

Iraqi troops killed six ISIS militants in Mousl

GMT 12:33 2017 Friday ,22 December

Yara denies presenting new talk show

GMT 01:00 2017 Wednesday ,20 December

Saudi and Russia expnad food integration

GMT 14:33 2017 Tuesday ,19 December

German business morale eases back from record high

GMT 12:32 2017 Tuesday ,19 December

UK weather: The latest Sky News forecast

GMT 04:53 2017 Tuesday ,19 December

Egypt’s government signs agreement with Switzerland

GMT 04:27 2017 Tuesday ,19 December

Tensions dominate the Iranian parliament amid fears

GMT 11:35 2017 Monday ,18 December

Putin appreciates U.S intelligence cooperation

GMT 08:05 2017 Monday ,18 December

Mona Zaki reveals details of her new show

GMT 17:32 2017 Sunday ,17 December

Polls open in Chilean presidential election

GMT 07:16 2017 Sunday ,17 December

Yasmine Underlines importance of Fatimid Cairo

GMT 20:34 2018 Saturday ,20 January

Bahrain press headlines

GMT 22:38 2018 Tuesday ,23 January

Bahrain Press headlines

GMT 07:22 2017 Thursday ,23 November

Zimbabwe's next leader heads home after Mugabe exit

GMT 07:23 2017 Thursday ,23 November

Zimbabwe's next leader heads home after Mugabe exit

GMT 16:25 2016 Thursday ,22 December

Italian bank Monte Paschi edges closer to state bailout

GMT 06:41 2018 Saturday ,17 March

testing from boss1

GMT 09:12 2017 Friday ,17 November

Gleam Futures represents Grace Beverley

GMT 06:03 2014 Wednesday ,09 April

Please .. Let Gaza breathe!

GMT 16:03 2017 Thursday ,21 December

US hits Myanmar general in new global rights sanctions

GMT 16:33 2014 Thursday ,13 November

Al-Ehtimam Bil Aakhareen

GMT 08:10 2018 Tuesday ,23 January

To 'eternal style' of late Alaia
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday