Adidas Raises 2016 Guidance After First-Quarter Earnings Jump

FRANKFURT, Germany — German sporting goods group Adidas hiked its guidance for 2016 sales and earnings a second time as it reported a 38 percent jump in quarterly underlying profit, citing strong brand momentum.

Adidas said on Wednesday it now expected its 2016 currency-adjusted sales to grow by about 15 percent, compared with a previous forecast for a rise of 10 to 12 percent.

It sees net profit from continuing operations rising by 15 to 18 percent this year, compared with previous guidance for a 10 to 12 percent growth.

Shares were indicated to rise 3.4 percent to the top of the German blue-chip index, which was seen unchanged in pre-market trade at brokerage Lang & Schwarz.

Adidas had raised its guidance in February after beating 2015 targets, having previously seen sales and earnings up by a high single-digit percentage.

First-quarter revenues rose 17 percent to €4.8 billion (£3.7 billion) and were up 22 percent when adjusted for currency swings, while net profit from continuing operations rose to €350 million from €255 million, excluding goodwill impairment losses.

Adidas is due to publish full first-quarter results and more details on the improved outlook on May 4.

By Maria Sheahan; editors: Gopakumar Warrier and Georgina Prodhan.