BERLIN (dpa-AFX) - German sportswear maker Adidas AG (ADDYY.PK, ADDDF.PK) reported that its second quarter net income attributable to shareholders declined to 294 million euros or 1.60 euros per share from 397 million euros or 2.03 euros per share in the prior year.
Quarterly net income from continuing operations declined to 360 million euros from 387 million euros in the previous year. The result was supported by a one-time tax benefit of more than 100 million euros due to the reversal of a prior year provision.
But revenues for the second quarter grew 10% to 5.596 billion euros from 5.077 billion euros last year. Revenue growth in the second quarter was driven by Western markets despite last year's lockdowns in Vietnam still reducing sales, particularly in EMEA and North America, by 200 million euros in total.
In the second quarter, currency-neutral revenues increased 4% as adidas continued to see strong momentum in Western markets.
The company said last month that it cut its outlook for financial year 2022 reflecting slower recovery in Greater China and potential slowdown in other markets.
The company now expects currency-neutral revenues to grow at a mid- to high-single-digit rate in 2022. Previously, it was expected at the lower end of the 11% - 13% range.
The company now projects annual net income from continuing operations to reach a level of around 1.3 billion euros. Previously, it was expected at the lower end of the 1.8 billion euros - 1.9 billion euros range.
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