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HERZOGENAURACH, Germany — Adidas AG beat earnings estimates as sales picked up in the US after months of trouble there from supply-chain snags.
Currency-neutral sales rose 6 percent in the third quarter. Total revenue reached €6.4 billion ($7.1 billion), narrowly exceeding the average estimate. Operating profit of €897 million also topped the consensus.
Key Insights
The European market also seems more promising as sales returned to growth, rising 3.2 percent. Adidas is hoping its home market can become a motor again, helped in part by next summer’s European Championships soccer tournament.
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Investors will want to know whether Adidas has completely resolved the supply issues in North America. The cost of flying clothing across the Pacific has been weighing on earnings. Sales in the region jumped 16 percent.
While Rorsted downplayed the threat of US-China tariffs in August, he’ll nonetheless field questions about his latest views, especially after the chief executive of rival Puma SE said in October that such measures are affecting earnings.
Market Performance
The Herzogenaurach-based company’s stock has climbed more than 50 percent this year and is on pace for its fifth straight annual gain.
By Tim Loh; editors: Eric Pfanner and Thomas Mulier.
