BERLIN (dpa-AFX) - German sports shoes, clothing and accessories giant Adidas AG (ADDYY.PK, ADDDF.PK) reported Friday that its first-quarter net income attributable to shareholders rose 17.1 percent to 632 million euros from 540 million euros in the year-ago period. Earnings per share grew 20.3 percent to 3.18 euros from 2.64 euros last year.
Net income from continuing operations increased 16 percent to 631 million euros from 542 million euros last year. This includes a negative impact from the adoption of IFRS 16 of 7 million euros, reducing year-over-year net income growth by approximately 2 percentage points.
Basic earnings per share from continuing operations reached 3.17 euros including the IFRS impact, an increase of 19 percent year-over-year from 2.65 euros in 2018.
Operating profit increased 17.3 percent to 875 million euros from 746 million euros in the year-ago period, resulting in an operating margin improvement of 1.4 percentage points to 14.9 percent from 13.4 percent a year ago.
Net sales for the quarter rose 6.1 percent to 5.88 billion euros from 5.55 billion euros in the prior-year quarter.
Currency-neutral revenues grew 4 percent. This was driven by 5 percent growth at brand adidas, reflecting increases in both Sport Inspired and Sport Performance. Currency-neutral Reebok sales were down 6 percent, despite growth in Classics.
Looking ahead, Adidas confirmed its outlook for fiscal 2019. The company continues to expect sales to increase between 5 percent and 8 percent on a currency-neutral basis.
Net income from continuing operations for the year is projected to increase to a level between 1.88 billion euros and 1.95 billion euros, reflecting an increase of between 10 percent and 14 percent compared to the prior year level of 1.709 billion euros.
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