2016’s summer of sports, including the European Championship football and the Olympic Games, have helped Adidas generate excellent turnover and profit numbers. CEO Herbert Hainer, who will resign shortly, even talks about a record year.
Net profit doubled
Adidas’ net profit reached 291 million euro in the past quarter (until July), almost double last year’s result. One thing to note is that it had a one-time financial advantage this time around: British football club Chelsea paid off its Adidas contract prematurely to sign a deal with rival Nike.
Turnover also achieved double-digit growth, up 13 % to 4.4 billion euro. China achieved the largest growth (+ 30 %), followed by Western Europe (+ 29 %), while Nike’s home territory – North America – achieved a 26 % turnover growth. The company itself claims it keeps stealing away market share from its eternal rival.
1 billion euro profit?
Only last week, Adidas improved its full-year forecast for the fourth time this year. Herbert Hainer already said back then Adidas aimed to generate a 975 million to 1 billion euro profit for its full fiscal year, a statement he repeated today. He believes the group is ready to break every record this year.
This astonishing performance is also visible on the stock exchange. The Adidas share already soared 65 % this year, which is the best performance of any elite share on the Frankfurt stock exchange, something investors obviously appreciate.
