Business
Adidas raises 2024 guidance again, citing good brand momentum
Global Banking and Finance Review
Company
(Reuters) -Adidas on Tuesday raised its full-year sales and
(Reuters) -Adidas on Tuesday raised its full-year sales and profit guidance, citing better than expected performance in the third quarter and good brand momentum as it benefits from popularity of its three-striped Samba and Gazelle shoes.
The German sportswear brand raised its forecasts for the third time this year, saying it now expected currency-neutral revenues to increase by around 10% this year, having previously forecast a high single-digit rate.
Adidas also raised its profit forecast for the year to 1.2 billion euros ($1.31 billion) from 1 billion euros.
Over the third quarter, Adidas revenue grew 7% to 6.438 billion euros, slightly above analysts’ estimates of 6.416 billion euros.
($1 = 0.9176 euros)
(Reporting by Isabel Demetz and Tristan Veyet in GdanskEditing by Tomasz Janowski)
Currency-neutral revenues refer to the sales figures adjusted to eliminate the effects of currency fluctuations. This allows for a clearer comparison of performance across different markets.
Brand momentum refers to the positive growth and increasing popularity of a brand, often driven by consumer demand and effective marketing strategies. It can lead to higher sales and market share.
Revenue growth is the increase in a company's sales over a specific period, typically expressed as a percentage. It indicates the company's ability to expand its business and attract more customers.
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