Take that, Jumpman!
Adidas AG (ADDYY) shares surged to the top of the European index Thursday after the sportswear group topped analysts' forecasts in its second quarter earnings and trounced rival Nike Inc. (NKE) for sales growth in the crucial U.S. market.
Adidas said net profit for the three months ending in June came in at €418 million ($484 million) as group sales rose 10% to €5.26 billion. U.S. sales, the group said, slowed modestly, but with a 16% growth rate, the figure is still well ahead of the 3% rate Nike published for its March to May period. Adidas also said sales in China grew by 27% from the same period last year. The group also announced a "mid-triple-digit million euro range" impairment change for the revaluation of its Reebok brand in 2016.
"We delivered another strong quarter on the back of a successful World Cup activation," said CEO Kasper Rorsted. "Our profitable growth was once again driven by our strategic focus areas North America, Greater China and e-commerce, while we continued to invest into the desirability of our brands and the scalability of our business."
Adidas shares were marked 7.53% higher by mid-day in Frankfurt trading and changing hands a €205.00 each, a move that extends the stock's year-to-date advance to 23%, a figure that still trails the 28.7% gain for Nike over the same period.
The Herzogenaurach, Germany-based group said it sold more World Cup related football tops over the course of this year's competition in Russia than it did four years ago during the tournament in Brazil, where it shifted more than 8 million.
Rorsted told CNBC that the Reebok impairment was only related to an accounting issue in 2016 and had no impact on its contribution to group earnings, adding that he was confident he could bring the brand into the black by 2020.