Q2 operating profit zooms 77% at Adidas

01 Aug '16

2 min read

Operating profit at German sports goods and sportswear retailer Adidas zoomed 77 per cent from a year ago quarter to €414 million, as a result of a higher gross margin as well as operating expense leverage.

Revenues too soared 21 per cent year on year on a currency neutral basis and 13 per cent in euro terms to €4.4 billion in the second quarter of 2016.

“The positive impact from the early termination of the Chelsea F.C. contract, which lifted the second quarter's operating income, also contributed to the improvement,” Adidas said.

Resultantly, net income from continuing operations surged 99 per cent to €291 million in the reporting quarter as against €146 million in the prior year' second quarter.

“Basic earnings per share from continuing and discontinued operations totaled to €1.45 in the quarter under review, reflecting a 100 per cent increase over the earlier year's second quarter,” the company added.

Following the excellent second quarter results, Adidas has upwardly revised its full year outlook and now expects currency-neutral sales to grow at a rate in the high teens in 2016.

Net income from continuing operations is now forecast to increase at a rate between 35 and 39 per cent as against the previously announced 25 per cent increase. (AR)

Fibre2Fashion News Desk – India

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