Adidas Resume Stock Repurchase Program

Adidas AG

The group announced the resumption of the stock repurchase program. The group said it had a surplus of up to 3 million shares at present, and the repurchase cost was 300 million euros.

The company's stock price has surged this year, and its stock price has risen 51.15% this year. It has increased by 56.66% in the past December, and has risen 126.65% in the past 24 months.

However, last week, the company announced quarterly results of slower growth.

As of the three quarter of September 30th, the net sales of the Adidas AG Adidas group rose 13.8% to 5 billion 413 million euros, better than the expected 5 billion 380 million euro, and the fixed exchange rate rose from 21% to 17% in the two quarter.

DZ Bank analyst Herbert Sturm pointed out that this is the first time in the past few quarters that the performance has not been significantly exceeded.

He is expected to give Adidas AG (ADS.DE) the investment rating of "hold", which has increased by 63% on Wednesday 2, 2016.

In the three quarter, the operating profit of Adidas Adidas AG group was 563 million euros, slightly lower than the market expectations of 565 million euros, compared with 505 million euros in the same period last year, 11.5% growth, but operating profit fell 20 basis points to 10.4%.

Group disclosure period to Reebok

The restructuring of the brand produced a cost of 10 million euros, and the remaining 20 million euros will be recorded in the four quarter.

This one-time expenditure does not prevent the group from maintaining its annual operating profit margin at 7.5%, which means it will increase by 100 basis points over 6.5% in the 2016 fiscal year.

However, the market is still uneasy about the negative effects of the Adidas AG group and the strengthening of the gross margin in the second half of the year. Even though the group has raised its annual forecast for the four time this year, MainFirst Bank analyst John Guy has expressed disappointment at not seeing the adjustment earlier this year, but stressed that the group's performance is stable and outperformed its counterparts in the AG.

RBC Capital Markets and Canadian capital market analyst Piral Dadhania pointed out that Adidas AG Adidas group has created such a high contrast base this year. Even if the strong momentum continues, the outlook for 2017 may not be good.

Some traders also pointed out that the market thought that the best time of the group had passed and investors were selling profits.

On Monday's closing price of 135.80 euros, Adidas AG Adidas group's 300 million euro repurchase cost obviously can not complete the acquisition of 300 million shares. Therefore, the market is expected that the company's share price may have reached or near the top.