Adidas Group said its preliminary results for the first quarter showed a 4% gain in sales and significant improvement in profitability. The better-than-expected results prompted Adidas to lift its full-year profit outlook.
Group revenues increased 4% both on a currency-neutral basis and in euro terms to almost €2.7 billion ($3.7 bn). As a result of increased gross margin and operating expense leverage, Group operating profit increased to €260 million ($356 mm) in the first quarter of 2010, up from €58 million in Q1 a year ago. The settlement of a lawsuit and the divestiture of a trademark both contributed a low-double-digit million euro amount each to this development.
Net income attributable to shareholders increased to €168 million ($230 mm) versus €5 million in the same period in 2009. Diluted earnings per share amounted to €0.80 in the quarter, from €0.04.
Following the stronger-than-expected first quarter performance, Adidas said it now forecasts full year earnings per share to reach a level between €2.05 and €2.30, up from its previous guidance of €1.90 and €2.15.
More detail on the revised outlook will be given with the publication of quarterly results on May 4, 2010.
