Adidas Returns to 4Q Sales Growth; Sees Strong 2021 Recovery

   By Joshua Kirby 
 

Adidas AG said Wednesday that it returned to slight growth at constant currencies in the last quarter of 2020, boosted by e-commerce and retail sales, and that it expects strong rebounds in its top and bottom lines and margins in 2021.

The German sporting-goods company booked fourth-quarter sales of 5.55 billion euros ($6.60 billion), up 1% adjusted for currency effects from the same period of 2019. Analysts had expected sales of EUR5.47 billion in the quarter, according to FactSet.

Operating profit fell to EUR225 million in the quarter from EUR245 million previously. The company's operating margin was close to flat at 4.1%.

For the full year, net income from continuing operations was EUR429 million, plunging from EUR1.92 billion previously, on sales that fell 14% to EUR19.85 billion, the company said.

For 2021, Adidas said it expects sales rebounds in all geographical areas, with Greater China, Latin America and Asia-Pacific to record the strongest increases. This should take the operating margin to around 9%-10%, the company said, while net income from conditioning operations should grow to EUR1.25 billion-EUR1.45 billion.

Adidas is set to release its next five-year plan later Wednesday. The company said recently it is resuming dividend payouts at a rate of EUR3 a share.

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

(END) Dow Jones Newswires

March 10, 2021 01:49 ET (06:49 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.