Adidas Returns to 4Q Sales Growth, Aided by E-Commerce; Sees 2021 Recovery -- Earnings Review

By Joshua Kirby

Adidas AG reported fourth-quarter and full-year results Wednesday. Here are the key points

REVENUE: The German sporting-goods company booked a fourth-quarter revenue increase at constant currencies to 5.55 billion euros ($6.60 billion), slightly ahead of analyst expectations. For the full year, sales came to EUR19.85 billion, down 14% on the year.

AFTER-TAX INCOME: After-tax income from continuing operations for 2020 stood at EUR429 million, sharply down from EUR1.92 billion in 2019.

WHAT WE WATCHED:

-FORWARD GUIDANCE: For 2021, Adidas said it expects sales to recover well in all geographical areas, led by 20%-30% growth in Greater China, Latin America and Asia-Pacific. Greater China will be accounted as a separate segment as of this year, the company said. It also guided for growth in margins and in after-tax income. Further targets should be set out at as part of Adidas's five-year plan due at a capital markets event later Wednesday.

-E-COMMERCE: Online sales grew by more than half in 2020, coming to a total of more than EUR4 billion. This helped mitigate pandemic-related store closures in many markets.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

March 10, 2021 04:17 ET (09:17 GMT)

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