(CercleFinance.com) – adidas released quarterly results slightly better than expected on Friday, but its forecast disappointed analysts, sending its stock down more than 5% in early trading in Frankfurt.
The German sports equipment manufacturer said this morning that it now expects sales growth, excluding currency effects, within the lower limit of its target of +11% to +13% set for this year.
The Herzogenaurach-based group justifies its caution by the “severe impact” on its activity of the containment measures recently taken in China to stem the spread of Covid.
Net profit from continuing operations is also expected to be at the lower end of its annual range, which targets between 1.8 and 1.9 billion euros.
In the first quarter, net income from continuing operations fell to $310 million, from $502 million in the same period of 2021.
Expressed in euros, sales for the first quarter amounted to 5.3 billion euros, which exceeded the average forecast by analysts by 2%.
In the wake of this publication, the adidas action dropped more than 5% on Friday on the DAX index, bringing its decline since the beginning of the year to some 29%.
RBC analysts – who have an ‘outperforming’ opinion on the stock – believe, however, that the gradual improvement in the situation in China and the organization of the World Cup in Qatar should improve the group’s growth profile in the months which come and support the stock market.
Copyright © 2022 CercleFinance.com. All rights reserved.
Did you like this article ? Share it with your friends with the buttons below.
