Sports giant Adidas upgrades forecasts on double-digit profit growth

Helen Cahill
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Kasper Rorsted, chief executive of Adidas (Source: Getty)

Sports retail giant Adidas upgraded its profit guidance today on the back of double-digit growth in its profits.

Operating profit for 2017 rose 31 per cent to €2.1bn (£1.8bn), while sales for the company were up 12 per cent to €5bn.

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The firm upgraded its 2020 profitability target to between 22 per cent and 24 per cent each year between 2015 and 2020; it had previously targeted maximum profit growth of 22 per cent.

The group also said that its operating margin will rise to 11.5 per cent, rather than 11 per cent, by 2020.

To achieve growth, Adidas said it was targeting consumers in Asia, and that it intended to streamline its operations on the continent.

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Adidas’s chief executive Kasper Rorsted said 2017 was a “strong year”.

“We made great progress toward achieving our mission to be the best sports company in the world,” he said.

“Our strategic growth areas – North America, Greater China and Digital Commerce – were the main drivers of our performance.

“We expect quality growth, with overproportionate bottom-line improvements.”