Adidas AG (ADDYY): Q4 2019 Earnings Snapshot

— Shoemaker Adidas AG (Other OTC: ADDYY) reported a 55% jump in net income attributable to shareholders for the fourth quarter of 2019 to EUR167 million while basic EPS climbed by 57% to EUR0.85.

— Sales for the company were up 12% to EUR5.84 billion.

— Adidas’ revenues increased by 10% on a currency-neutral basis. This reflects double-digit growth in both Sport Inspired and Sports Performance, which is backed by training, running and basketball categories.

— Revenues at the Reebok brand grew 7% driven by double-digit growth in Sport and a high-single-digit growth rate in Classics.

— Gross margin decreased by 3.2 percentage points to 49% as negative currency effects and a less favorable pricing mix more than offset positive effects from lower sourcing costs as well as a better product and channel mix.

— Looking ahead into the full year 2020, the company projects sales to increase at a rate of between 6% and 8% on a currency-neutral basis in 2020 driven by growth in all market segments.

— For the full year, net income from continuing operations is projected to increase to a level of EUR2.10-2.16 billion, reflecting an increase of 10-13% compared to the prior-year level of EUR1.918 billion.

— The overall impact of the coronavirus outbreak on its business in 2020 cannot be quantified reliably as the situation keeps evolving, the further recovery in Greater China, the extent of global spillover, as well as the availability of raw materials remain largely uncertain.

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