Adidas Greater China'S Three Quarter Sales Increased By 26%

In November 9th,

The third quarter results show that excluding the exchange rate factor, Adidas's sales increased by 8%, increased by 3% according to the euro, gross margin increased 1.4 percentage points to 51.8% cents, the profit rate increased 1.3 percentage points to 15.3%, the net income from continuous operation increased 19% to 656 million euros, and the basic earnings per share increased by 21% to 3.26 euros.

Among them, the Asia Pacific market and the Greater China region are all rising, excluding exchange rate factors. Sales in the Greater China region have increased by double digits, reaching 26%, and the Asia Pacific market has increased by 15%.

In response, Gao Jiali, managing director of Adidas Asia Pacific and managing director of Greater China, said: "strong consumer demand and exciting new products will help Adidas grow steadily in the Greater China and Asia Pacific markets and move towards a solid development year." (Colin Currie)

The sales growth of Adidas Greater China reached 26% in the third quarter. It has achieved more than 20% sales growth for eleventh consecutive quarters, and has further promoted regional growth.

The Asia Pacific market is still Adidas's largest and most profitable market in the world.

In the future, we will accelerate the process of marketization and enhance the digitalization level under the guidance of "Li Xin" strategy. Taking consumers as the center is the top priority and will provide the best brand experience for them.

In addition, according to the brand segmentation, excluding the exchange rate factor, Adidas brand's global revenue increased by 10%, mainly due to the two digit growth in sports fashion series, and the high digit digit growth of the sports performance series, and the training category and running category all once again achieved two digit growth.

Revenue declined by 5%, sales of training series and running series decreased, offset the classic double digit growth.

In terms of channels, Adidas's global sales growth benefits.

Strong double-digit growth, in which electricity supplier business in the 76% quarter growth.

According to the euro, global sales increased by 3% to 5 billion 873 million euros in the third quarter of 2018 and 5 billion 677 million euros in 2017.

Rothd, chief executive of Adidas global (Kasper Rorsted), said: "we have achieved another success in the third quarter.

Strong business growth has benefited from double-digit growth in our strategic growth areas, namely North America, Greater China and e-commerce.

At the same time, despite the negative impact of a significant increase in market input and severe exchange rate decline, we have achieved a very profitable growth.

Based on this, we are confident that we will achieve the expected level of profitability in 2018 and are steadily advancing towards the long-term goal of 2020.

Based on the excellent performance of the first 9 months of 2018, Adidas has increased its profit forecast for the whole year and has defined the target area of revenue growth.

Excluding the exchange rate factor, Adidas expects global sales growth to be around 8% to 9% in 2018, slightly below the projected range (earlier: about 10%), mainly because the growth level in Western Europe is slightly below the projected level.

At the same time, the net revenue generated by the continuous operation business is expected to grow to 1 billion 660 million to 1 billion 720 million euros, which will grow by 16% to 20% on the basis of 1 billion 430 million euros last year, after a target of 13%-17% growth of 1 billion 615 million -16.75 billion euros.

The gross profit margin of the company is expected to increase by 1 percentage points to 51.4%, after raising 0.3 percentage points to 50.7%, which is mainly due to more favorable pricing, channel and regional combination, but the adverse effects of exchange rate fluctuation will offset the above advantages to a certain extent.

The operating profit margin is expected to grow by about 1 percentage points to 10.8%, after growing from 0.5 to 0.7 percentage points to 10.3% to 10.5%.

Excluding the negative effects of the one-off tax in 2017, the basic earnings per share generated by continuous operation are expected to increase by 15% to 19% on the basis of 7.05 euros in the previous year without considering the reduction of the number of tradable shares in the stock repurchase program. The previous growth was 12% to 16%.