- Increased Annual Profit Expectations: Adidas has raised its operating profit forecast for the fiscal year to €1.2 billion, up from the previous expectation of €1.0 billion, and surpassing the market estimate of €1.13 billion.
- Third Quarter Highlights: Preliminary results for the third quarter show an operating profit of €598 million, exceeding the market expectation of €558.6 million.
- Gross Margin Improvement: The company’s preliminary gross margin is reported at 51.3%, which is higher than the estimated 50.5%.
- Revenue Figures: Preliminary revenue for the quarter is approximately €6.44 billion, slightly below the market estimate of €6.45 billion.
- Impact of Yeezy Inventory: The third-quarter results include a €50 million contribution from the sale of parts of the remaining Yeezy inventory, with future Yeezy sales expected to provide additional revenue but no further profit in the fourth quarter.
- Full-Year Guidance Update: The company’s annual guidance has been revised upward, reflecting the quarter’s stronger-than-anticipated performance and ongoing brand momentum.
- Market Sentiment: Current analysts’ recommendations include 17 buy ratings, 11 holds, and 6 sell ratings for Adidas shares.
A look at adidas Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Adidas, the global sports shoes and equipment manufacturer, has an overall positive long-term outlook based on the Smartkarma Smart Scores analysis. With relatively balanced scores across key factors, including Value, Dividend, Growth, Resilience, and Momentum, the company seems to be positioned well for future growth. While some areas like Value and Dividend show room for improvement, the strong Momentum score indicates positive market sentiment and potential for continued performance in the near future.
Adidas AG’s wide range of products, from footwear to sports apparel to golf equipment, have a global reach, catering to the diverse needs of consumers worldwide. As the company maintains a moderate yet stable position across the Smartkarma Smart Scores categories, investors might view Adidas as a consistent player in the sports industry with opportunities for growth and resilience in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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