Adidas raises forecast after Q3 profit beat despite Kanye West Shoe woes


by   |  VIEW 461
Adidas raises forecast after Q3 profit beat despite Kanye West Shoe woes

On Wednesday, the 6th of November 2019, German sportswear Goliath, Adidas, founded and headquartered in Herzogenaurach, released its Q3 earnings’ report that had beaten an analysts’ estimate by a much-smaller than anticipated margin following a topple in sales of its Kanye West-designed Yeezy shoes, while the footwear maker had also raised its full-year profit forecast for fiscal year 2019-2020 ahead of 2020 European Championship.

According to Adidas’s Q3 earnings’ report released on Wednesday (November 6th), the European footwear giant, which had been threatening dominance of Nike Inc. in the US markets over the recent years, posted a rise of currency-adjusted 6 per cent to €6.41 billion ($7.10), beating an analysts’ estimate of €6.32 on an average, nonetheless, the footwear maker’s Kanye West Shoes’ sales grew by only 1 per cent on a year-on-year basis.

However, the German footwear manufacturer had also feathered an upsurge of roughly 37 per cent in ecommerce sales from a 14 per cent a year earlier, as a majority of Yeezy shoes were sold off online during its third quarter that ended on September 30th.

Nonetheless, amid a drop of sales in its Kanye West Shoes, Adidas shares, which had scored a robust rise of more than one-third this year pummelled nearly 3 per cent following release of its Q3 earnings’ report, while expressing an out-and-out optimism over its full-year profit forecast despite an en masse supply chain disruption in China that resulted in a plunge of its China profit by 11 per cent, Adidas CEO Rorsted said in a post-earnings’ call on Wednesday (November 6th), “We are very confident about how the last two months of the year will unfold. ”