Adidas has upped its long-term guidance as it plans to accelerate sales after the company reported net income grew 41 per cent in 2016.
Net income from continuing operations rose to €1bn in 2016, coming in at the top end of the company’s forecast, of an increase of between 35 per cent and 39 per cent to €974m to €1bn. This was slightly above analysts’ estimates compiled by Bloomberg of €999.2m.
Double-digit sales in Sports Performance, Adidas Originals and Reebok Classics lifted the company’s revenue in euro terms by 14 per cent to €19.3bn in line with analysts’ estimates compiled by Bloomberg. On a currency neutral basis, revenue grew 18 per cent in 2016, Adidas said.
The company forecasts 2017 net income to grow by 18 per cent to 20 per cent to up to €1.2bn with currency-neutral sales to increase by between 11 per cent and 13 per cent and for operating margin to improve by between 8.3 per cent and 8.5 per cent.
Adidas said it would increase its long-term guidance as it plans to accelerate sales and earnings growth until 2020 with currency-neutral sales expected to increase by between 10 per cent and 12 per cent on average each year between 2015 and 2020.
The company said it expects net income from continuing operations to grow between 20 per cent and 22 per cent on average each year between 2015 and 2020, up from a previous guidance of 15 per cent.