Adidas results boosted by cancelled five-year contract with Chelsea

 
Oliver Gill
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Posto adidas - YouTube Live TV Show and Press Conference with guest David Beckham
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Adidas increased its guidance for 2016 for the fourth time this year when releasing second-quarter preliminary results today.

The Bavarian-based sports group reported earnings per share that had doubled - €1.45 per share compared to €0.73 during the same period in 2015.

Revealing operating profit that was up 77 per cent to €414m (£348m), the company alluded to a key one-off cost-saving realised during the period: “The positive impact from the early termination of the Chelsea F.C. contract contributed to the improvement.”

Read more: Why Chelsea can profit from Adidas kit deal termination

However, it remained tight-lipped on the exact quantum of the cost-saving, only being prepared to state that it “lifted the Q2 other operating income by a mid to high double digit million euro amount".

The group had previously advised that it expected operating margin to increase to 7 per cent. However in the fourth upward revision of 2016, the Dax-listed group advised that this is now expected to be 7.5 per cent.

"We have every confidence that the strong momentum our brands are enjoying around the globe will continue in the second half of 2016 and beyond," said chief executive Herbert Hainer.

Read more: Pogba tipped for huge Adidas sponsorship worth £31m

“We are extremely pleased how well our brands are connecting with the consumer and how fast our new strategy has started to gain traction.

“Double-digit growth rates across all key regions and all major categories is proof positive of the initial success of 'Creating the New'," he said.

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