ADIDAS DELIVERS STRONG RESULTS IN 2019

Adidas“In 2019, we proved our resilience and delivered a strong year yet again. We recorded revenue increases across all regions and our direct-to-consumer business grew double-digits driven by e-commerce, one of our strategic growth areas.

In 2020, we will stay focused on the execution of our strategy to bring ‘Creating the New’ home and aim for a sixth consecutive year of double-digit bottom-line growth. Following the outbreak of the coronavirus, our business in Greater China has experienced a significant negative impact since Chinese New Year. As the situation keeps evolving, we cannot yet reliably quantify the magnitude of the overall financial impact in 2020. Regardless of the impact on our business, it remains our top priority to ensure the health and safety of our employees and their families.”

KASPER RORSTED, ADIDAS CEO

Major developments in 2019:

  • Currency-neutral revenues up 6%
  • Revenues grew to € 23.640 billion  (2018: € 21.915 billion)
  • DTC, including e-commerce, now accounts for one-third of the company’s total business
  • Double-digit sales increases in strategic growth areas Greater China and e-commerce
  • Operating margin expands to 11.3%
  • Net income from continuing operations grows 12% to € 1.918 billion (up 15% to € 1.972 billion when excluding negative impact from IFRS 16)
  • Management proposes dividend increase of 15% to € 3.85 per share

Outlook for 2020:

  • Currency-neutral sales to increase between 6% and 8%
  • Operating margin to increase to between 11.5% and 11.8%
  • Net income from continuing operations to increase between 10% and 13%
  • Outlook for 2020 does not reflect any impact from coronavirus outbreak in China

As the corona virus situation keeps evolving, the further recovery in Greater China, the extent of spillover into other countries as well as the availability of raw materials remain largely uncertain. In light of these uncertainties, the overall impact of the coronavirus outbreak on the company’s business in 2020 cannot be quantified reliably at this point in time. Despite the temporary challenges posed by the coronavirus outbreak, the company remains fully confident about its future growth prospects thanks to its healthy fundamentals and its strong positioning within an attractive industry.

For more information visit Adidas

2020-03-11T14:03:35-04:00 March 11th, 2020|