Adidas Increased Airlift To Provide Us Growth And Share Price Innovation

In 2019, the performance of Adidas AG (ADSGn.DE) Adidas group was still constrained by the shortage of demand in the US market.

Kasper R? Rsted, chief executive, said that the second largest sporting goods group in the world has increased the number of air traffic to maintain the growth of us demand.

On Friday, Adidas AG (ADSGn.DE) closed at a record high of 249.8 euros, rising 9.1% throughout the day, expanding its growth to 37% in 2019.

Since Kasper R rsted took office in August 2016, its stock price surged over 70% and its market value increased by 20 billion euros.

In the first quarter, the net sales of Adidas AG Adidas group totaled 5 billion 883 million euros, slightly better than the market expected 5 billion 800 million euros, an annual increase of 6%.

After excluding the exchange rate effect, the increase was 4%, which was further slower than the 5% in the four quarter. The growth in the period mainly came from the 16% increase in the Greater China region and the 40% increase in online sales. The growth rate in the North American market dropped from 17% in the same period last year to 3%, while Europe declined by 3% over the same period last year.

Kasper R? Rsted's visit to CNBC's "Squawk Box Europe" shows that the 4% low growth rate in the first quarter is only a "temporary" phenomenon. Investors should get used to the growth of high digit sales.

But this is still below the group's medium-term target of 10%-12%.

At the analysts' conference call, he revealed that Adidas Adidas brand ambassadors Lionel Messi Messi and Kanye West Kanye West and other stars led China's sales.

A month ago, the brand announced its creative collaboration with pop star Beyonc Beyonce's personal fashion brand Ivy Park, and Kasper R rsted revealed today that the first batch of products will be launched before the end of this year.

When asked by Bloomberg TV about whether Yeezy and other cooperation series promoted European market sales, Kasper R rsted only said that promoting global sales is "correct products, correct channels and suitable spokesmen".

With Stan Smith, All Star and other retro products declining in Europe, Kasper R rsted pointed out that Ultra Boost and other functional series led growth.

For the three major problems that restrict the performance of the group, Kasper R rsted said that the new capacity allocation could alleviate the tight supply and demand relationship of the mid-range products in the US, while the European market would benefit from the pformation of the nature of the product's return to sports, and the 2020 European Cup Jersey listing. This year, Reebok will resume its growth. Reebok Reebok is also expected to recover in the first quarter, and the first quarter sales of the brand decrease year by year.

The Nike Inc. (NYSE:NKE) Nike group, the main competitor of the North American market, gained 7% of its sales in the domestic market in the last three quarters, while Under Armour Inc. (NYSE:UAA) Andemar dropped 3%.

The decline in procurement and marketing costs, the expansion of high-end product sales and the expansion of digital business prompted Adidas AG group to achieve a profit of 875 million euros in the first quarter, much better than the 794 million euros expected by the market, and a significant increase of 140 basis points in business profit margins, reaching 14.9%, which is more than 13.5% of the Nike Inc. Nike group in the last quarter of.

Net profit amounted to 632 million euros, 11% higher than the 567 million euros expected by the market.

The group maintained its fixed exchange rate growth of 5%-8% in 2019, increased its operating profit margin from 10.5% in 2018 to 11.3%-11.5%, and the net profit growth of 10%-14% to 18.8-19.5 billion euros, and reiterated the expected further slowdown in the two quarter.

Warburg Research analyst Joerg Philipp Frey pointed out that the sale of Adidas AG Adidas group was pleasantly surprised in the first quarter, and the gross profit margin also improved significantly. The annual performance outlook was therefore "conservative".

Now investors are longing for the group to raise its profit guidelines.

Author: Lin Biying