Adidas 3Q Net Profit, Sales Fell But Beat Estimates

   By Mauro Orru 
 

Adidas AG said Tuesday that net profit and sales for the third quarter fell but still beat analysts' expectations.

The German sporting-goods company said third-quarter net profit fell to 546 million euros ($645.1 million) from EUR646 million for the third quarter of 2019, while operating profit decreased to EUR794 million from EUR897 million.

Sales for the period slipped to EUR5.96 billion from EUR6.41 billion.

Analysts expected net profit of EUR527.5 million, operating profit of EUR725 million and sales of EUR5.94 billion, according to FactSet.

The company said new lockdown policies in several countries aimed at curbing a second wave of the coronavirus pandemic harmed its global store-opening rate, which recently fell to 93% from 96% at the end of September.

Adidas said it expects its top line to develop similarly in the fourth quarter as it did in the third quarter, projecting a low- to mid-single-digit currency-neutral revenue decline.

Operating profit for the fourth quarter should be between EUR100 million and EUR200 million, it said.

Adidas assumed no additional major lockdowns for the new outlook, a store-opening rate above 90% and no further material slowdown of global store traffic.

Write to Mauro Orru at [e-mail]; @MauroOrru94

(END) Dow Jones Newswires

November 10, 2020 02:06 ET (07:06 GMT)

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