CONNECT WITH US
eCommerce

eCommerce

Adidas’ record Q3 is salt in the wound for Nike

Retail Dive – E-commerce logo

Published on

Add as a preferred source on Google
Adidas’ record Q3 is salt in the wound for Nike

Preliminary figures show revenue reaching $8.1 billion, as the sportswear giant takes “significant” share from its rival.

Adidas has thrown down another impressive quarter, showering cold water on the turnaround at rival Nike.

CEO Bjørn Gulden praised the company’s marketing efforts and investment in innovation for the strong quarter, touting profitable growth in soccer, running and training.

“Our fantastic designers and development teams have created new apparel collections that are globally in high demand and currently fueling our lifestyle business. Yes, the footwear lifestyle business is currently challenging, mainly due to too much inventory and too much discounting in the marketplace, but we know this will soon normalize again,” Gulden said in a statement. “In this environment we are not trying to maximize the short-term. Instead we remain disciplined, continue to strengthen our foundation for sustainable and profitable growth and stay focused on our mid-term targets.”

While Adidas’ official earnings report won’t come out until next week, preliminary metrics stand in stark contrast to Nike’s latest report, which saw revenue down 4% year over year to $11.2 billion. Nike’s challenges are largely expected to continue through the current fiscal year and into the next one, making this a meaningful competitive opportunity for Adidas.

Adidas expects currency neutral revenues to grow up to 10% this year, and the retailer is already taking meaningful share from Nike.

“The company is executing well, and its growth and profitability remain strong, resulting in significant market share gains and outperformance relative to competitors, particularly Nike,” Telsey Advisory Group analysts led by Cristina Fernández said Tuesday.


Source link
Related Topics:eCommerce

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.