German Sportswear Firm ADIDAS AG/S ADR (OTCMKTS: ADDYY) Leaps Big In Sales Revenue In The First Quarter Of 2018
ADIDAS AG/S ADR (OTCMKTS: ADDYY) is smiling all the way to the bank; thanks to its successful start to the year, which has so far been characterized by double-digit growth across all regions. The giant German sportswear attained a 14.8% rise in its net sales in the first quarter of the year and a gross profit rise of 17.6%. Surprisingly, the company was flying high even in the presence of its American competitor Nike given that it had a 31% rise compared to the rivals 3% rise.
Speaking about the company’s tremendous achievement, Kaspar Rorsted, the Chief executive reported, “We had a strong start into the year, with continued sales and earnings momentum.”
Adidas key drivers of growth
The company experienced faster and significant growth in the bottom line compared to the top line. However, this did not stop its investment into the key drivers, which were expected to accelerate its growth. Some of the key drivers the company used included a strategic focus on particular areas such as North America and Greater China. The two areas achieved 27.4% raise and 29.5% rise respectively. Adidas also capitalize heavily on digital e-commerce, which brought a 57%.
Rorsted applauded all the effort the company had put and the progress they had achieved. Having increased its predictions for net income from continuing operations, its mission is to become the best sports company in the world.
Other areas which gave the sportswear company a big boost
Apparently, it was not all about North America, Greater China, and e-commerce. The popularity of Adidas retro-style trainers also came in handy in benefiting the company. There was notable growth in the sales of the group’s Adidas and Reebok brands in a majority of markets. However, the Russian market experience a share of challenges occasioned by the closure of stores and consumer sentiments.
Nonetheless, a rise in running and outdoor products Adidas Originals and Adidas Neo, commonly designed for casual wear were also forces to reckon in boosting Adidas growth. All said and done, the company says it is looking at an increased growth rate of 12% and 13%.