Currency Fluctuations Impact Adidas Sales Revenue

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Currency Fluctuations Impact Adidas Sales Revenue
Photo: Daniel Karmann DPA/AP/TT

The German clothing and shoe conglomerate Adidas falls on the Frankfurt stock exchange after a preliminary interim report, which shows an unexpectedly large currency impact on sales revenue.

The stock market fall after the report was 5.5 percent, which means that Adidas' market value has declined by 13 percent in a year.

Revenue during the third quarter of the year increased to 6.6 billion euro, from 6.4 billion euro during the corresponding quarter last year.

This means a new record level according to CEO Bjørn Gulden, former Norwegian football star. Gulden describes the situation as turbulent, with the Trump administration's tariffs and widespread uncertainty among store owners and consumers around the world.

But analysts had higher expectations for revenue. The average forecast was 6.7 billion euro, according to Bloomberg.

Adidas takes the opportunity in the report to refine its growth forecast for the full year to around 9 percent. This should provide an operating profit of approximately 2.0 billion euro for the full year, which can be compared to the previous forecast of 1.7-1.8 billion euro.

The operating result for the third quarter was according to the report 736 million euro, compared to expected 688 million euro.

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By TTEnglish edition by Sweden Herald, adapted for our readers

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