Adidas forecast another year of sales as well as profit growth for 2018, albeit at a slower pace than in 2017, as the German sportswear firm reported fourth-quarter sales that will undershot analyst forecasts as well as a net loss due to a one-off U.S. tax hit.
Adidas, which has seen its shares fall 15 percent inside past six months as its growth cooled, said late on Tuesday the idea plans to buy back up to 3 billion euros ($3.72 billion) worth of its shares by 2021, or almost 9 percent of its share capital.
On Wednesday, Adidas said quarterly sales rose 12 percent to 5.06 billion euros, a currency-neutral rise of 19 percent, yet missing average analyst forecasts for 5.13 billion.
the idea reported operating profit more than tripled to 132 million euros, beating analyst forecasts for 61 million, yet recorded a net loss of 41 million after a tax impact of 76 million due to adjustments inside U.S. tax code.
“I would likely argue that will while we might have missed (analyst expectations)… growing 16 percent on the top line as well as 32 percent on the bottom line, we are extremely happy with the results,” Adidas CEO Kasper Rorsted told CNBC on Wednesday.
“We need to make sure that will we grow the business as well as we grow the bottom line quicker than our competitors as well as that will’s what we are doing as well as eventually that will will be reflected inside share cost,” he added.
For 2018, the idea forecast currency-neutral sales up around 10 percent, the operating margin to enhance to between 10.3 as well as 10.5 percent, coming from 9.8 percent in 2017, as well as net profit coming from continuing operations to rise between 13 as well as 17 percent.