Adidas results for the year ended June 30, 2019 have been published. The company's revenues grew 4% in the second quarter to 5,509 billion euros, improving the value of 5,261 billion euros obtained in the same period of 2018. Despite the increase and that the analysts' average forecasts were for a rise to 5,54 billion, the company, which did not reach its target, saw a sharp decline in the soccer category one year after the World Cup.
Operating margin improves 0,4 percentage points to 11,7% while the company's gross margin increased by 1,2 percentage points to 53,5% from 52,3% previously.
Net income from continuing operations increased by 10% to 462 million euros from the 418 million obtained in the comparison period. This includes a negative impact from the adoption of IFRS 16 of 7 million, reducing year-on-year net income growth by approximately 2 percentage points. Basic earnings per share of continuing operations it reached €2,33 including the impact of IFRS, an increase of 13% year-on-year.
Although the stock is suffering in Frankfurt with a drop of 4,20%, the Group has confirmed its forecasts:“We remain confident about the revenue acceleration in the second half of the year and confirm our outlook for 2019,” said Chief Executive Officer Kasper Rorsted.
