Currency neutral revenues for the international sportswear Group were up 12% in the third quarter, mainly reflecting a 13% increase at brand Adidas, which was driven by double-digit increases in the running and outdoor categories as well as at Adidas Originals and Adidas Neo. Sales in the football and basketball categories declined, reflecting “significantly lower licence revenues mainly due to the termination of two major sponsorship agreements”, while revenues at the Reebok brand grew 1%.
On a currency-neutral basis, the combined sales of the adidas and Reebok brands grew in all regions except Russia/CIS. Greater China (+28%) and North America (+23%) increased at double-digit rates each, driven by the Adidas brand, which continues to enjoy particularly strong momentum in these key regions as reflected in growth rates of 29% and 31%, respectively. Revenues in Western Europe and Latin America increased at a high-single-digit rate each, at 7% and 8%, respectively, while revenues in MEAA and Japan increased 6% and 3%, respectively. Sales in Russia/CIS declined 17%, “reflecting the ongoing challenging consumer sentiment as well as additional store closures during the third quarter”. Revenues in Other Businesses, comprising adidas Golf, Runtastic and Other centrally managed businesses, were up 14% on a currency-neutral basis, driven by double-digit increases at adidas Golf.
In the first nine months of 2017, Group revenues increased 16% on a currency-neutral basis to € 16.16 billion (2016: €13.98 billion). From a brand perspective, revenues for brand Adidas grew 17%, and Reebok sales were up 6% versus the prior year. Gross margin increased 0.9 percentage points to 50.1% (2016: 49.2%).
Adidas confirms its outlook for the financial 2017 and expects sales to increase 17%-19% in 2017. Net income from continuing operations is projected to increase 26%-28% to €1.36- €1.39 billion.
