German sportswear and equipment maker Adidas AG on Thursday raised its earnings and sales guidance for the full year after a strong second quarter with higher sales, better margins and lower operating costs.
Quarterly net profit in its continuing operations rose 16% to EUR347 million ($405 million) from EUR301 million.
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Revenues in continuing operations rose 20% to EUR5.0 billion. Operating profit was up 18% to EUR505 million.
Adidas has signed agreements to sell its golf brands TaylorMade, Adams Golf, and Ashworth and its CCM Hockey ice hockey brand, which it now reports as discontinued operations. Its continuing operations now mainly consist of the Adidas and Rebook brands.
Adidas said it now expects 2017 sales to rise 17% to 19% in currency-neutral terms, up from the previous guidance of a rise between 12% and 14%.
Net income from continuing operations is expected to rise to between EUR1.36 billion and EUR1.39 billion. Adidas previously forecast a net income rise to between EUR1.2 billion and EUR1.225 billion.
Adidas said it will provide more detail when it publishes full second-quarter results on Aug. 3.
Write to Ulrike Dauer at email@example.com
(END) Dow Jones Newswires
July 27, 2017 13:58 ET (17:58 GMT)