Adidias Q1 revenues up 22 percent, raises FY16 outlook

Announcing its preliminary results for the first quarter, Adidas Group said, revenues increased 22 percent on a currency-neutral basis and 17 percent in euro terms to 4.8 billion euros (5.4 billion dollars). As a result of a higher gross margin as well as operating expense leverage, Group operating profit increased 35 percent to 490 million euros (555 million dollars).

Positive Q1 leads to upbeat outlook for FY16

Net income from continuing operations increased 38 percent to 350 million euros (396 million dollars and basic earnings per share from continuing and discontinued operations amounted to 1.75 euros (1.98 dollars) in the quarter, reflecting a 50 percent increase over the prior year level.

Keeping the strong brand momentum in sight, which is reflected in the better than expected first quarter performance, the Group has increased its 2016 financial outlook. Management now projects currency-neutral sales to grow at a rate of around 15 percent in 2016 from10 percent to 12 percent projected earlier. Furthermore, the company expects to continue to generate operating leverage throughout the remainder of the year. As a result, net income from continuing operations is now forecasted to grow at a faster rate than the top line and increase between 15 percent and 18 percent in 2016 against previous forecast of between 10 percent and 12 percent.