Sportswear giant Adidas said it is set to record its highest-ever revenues and operating profits in a financial quarter buoyed by a $320.2 million tariff refund from the US Government.
Based on preliminary figures, Adidas expects its third-quarter revenue to reach $11.6 billion, a 9 per cent increase and a company record. Operating profit in the quarter is set to increase by 37 per cent to $1.6 billion.
“A great quarter for adidas. We achieved the highest revenue ever in a quarter and the highest operating profit ever,” said CEO Bjørn Gulden. “Our brand, our product and our people are our strength.”
Gulden claimed that Adidas’s investment in its creative and marketing operations has “created brand heat and again made us an attractive brand”. Inside Retail has reported on the recent success the brand has found through the World Cup and its running products.
“Our fantastic designers and development teams have created new apparel collections that are globally in high demand and currently fueling our lifestyle business,” he added.
“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.”
Adidas said the tariff refund supported its operating profits, alongside “healthy full-price” product sales.
“In this environment, we are not trying to maximize the short-term,” Gulden said. “Instead, we remain disciplined, continue to strengthen our foundation for sustainable and profitable growth, and stay focused on our mid-term targets.”
“In a volatile and complicated world, it is a privilege to work with such a great team.”
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