Adidas (ETR:ADS) posted its first quarter results on Friday and confirmed its full-year outlook.
The multinational sportswear manufacturer said that its currency-neutral revenues grew 4% in its first quarter and 6% in euro terms to €5.883 billion. The company has said that this was driven by a 5% growth at brand Adidas.
According to Reuters, analysts were predicting a €5.8 billion figure, which the actual amount tops.
E-commerce was particularly strong, with sales growing by 40%.
“We had a successful start to the year, delivering double-digit sales increases in our strategic growth areas Greater China and e-commerce as well as another strong profitability improvement,” CEO Kasper Rorsted commented on the results.
“We confirm our full-year outlook and remain confident about the top-line acceleration in the second half of the year. 2019 will be an important milestone toward achieving our 2020 targets,” the CEO continued.
Net income from continuing operations amounted to €631 million, a 16% rise compared to the €542 million reported the prior year.
Adidas said that is continues to expect sales in increase during 2019 at a rate of 5-8% on a currency neutral basis. It reiterated its announcement in March regarding the strong demand growth for its mid-priced apparel, which it is unable to satisfy in full as a result of supply chain shortages. As a result, Adidas expects a sales growth of 3-4% for the first half of the year, and will rely on the second half of 2019 to accelerate its sales.
Founded and headquartered in Herzogenaurach, Germany, Adidas is a leading sportswear brand.
Elsewhere in the UK retail market, sportswear retailer JD Sports (LON:JD) also delivered a set of promising results, beating the current high street gloom. Its increase in annual profits confirm its confidence amid growing Brexit uncertainty.
JD recently saved its smaller competitor Footasylum (LON:FOOT) in a £90 million deal as the smaller branded trainers and tops store struggled.