March 08th came with an Adidas report. In it, the German multinational revealed its increasing US market value. The company also raised its guidance for the following period.
Adidas AG is a multinational corporation. It is based in Germany and was founded in 1924. The company is specialized in designing and manufacturing shoes, accessories, and clothing. Adidas is considered the largest sportswear producer in Europe. It also holds the title of second biggest such manufacturer in the world.
On Wednesday, an Adidas report revealed the latest company results. A statement on the matter was released by Kasper Rorsted. He became the Adidas CEO back in October 2017.
According to Rorsted and the Adidas report, the corporation increased its presence in the U.S. retail market. As the CEO himself stated, the North American market has been a long time challenge. Nonetheless, the latest figures show that Adidas has been securing rising numbers in the region.
And not only that. Rorsted stated that the U.S retail market growth also helped secure the company’s profit targets. He points out the fact that Adidas has been making “fantastic progress’ in this market. For the past two years, its U.S. retail area has been increasing. Rorsted also considers that the company has “a great momentum”.
Presently, Adidas is developing products specifically for the U.S. market. Ones which are also manufactured in the country. As such, it considers that it offers the “right products to the right customers”.
2016 was a very strong year for the company in the U.S. The Adidas report revealed an almost 30 percent growth over the past year alone. One that comes after an equally strong 2015.
As a whole, the company posted a net income coming up to 1.02 billion euros. This marks a 51.2 percent growth when compared to the previous year. For its biggest market, Western Europe, Adidas revealed a 17 percent increase. China followed it with a 22 percent rise.
But the North American market came with the biggest growth. This retail region sale numbers rose by 24 percent. They increased from 2.75 billion to 3.41 billion euros.
The Adidas report was also followed by a change in the company’s income guidance. As such, the corporation estimates a growth of in between 20 to 22 percent. This increase targets the next 5 years period of time. Previously, Adidas was targeting an average net income growth of about 15 percent.
Rorstead also revealed the company’s ambitious targets. He will be looking to accelerate Adidas’ growth strategy. The CEO will also be seeking to quadruple the company e-commerce revenues. Rorsted stated that these are the Adidas targets by 2020.
Following the 2016 strong guidance, Adidas is reportedly looking to gain achieve strong bottom- and top-line improvements for the current year.
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