Adidas (ADDYY) posted third-quarter earnings that were largely in line with analysts' estimates Thursday but maintained its full-year guidance and said it would likely take a financial hit from its restructuring of its Reebok brand.
Adidas said basic earnings per share for the three months ending in September came in at €1.93, up 24% from the same period last year, taking net profit to €387 million ($430 million), modestly higher than the €377 million consensus.
Shares in the group fell 4% in early Frankfurt trading, making it the biggest decline on the DAX performance index and changing hands at €140.05 each, wiping out all of the price gains earned over the past three months.
Revenue for the period, the company said, came in as expected at €5.4 billion. The company maintained its estimate of net profit growth of between 35% and 39% for the full year but said it would take a €30 million hit on restructuring efforts at Reebok.
"In spite of these one-off expenses, which are expected to impact the Group's operating profit in the fourth quarter in an amount of around €20 million, the company continues to project the operating margin for the Adidas Group to increase to a level of up to 7.5% in 2016 compared to the prior year level of 6.5%," the company said in a statement.
"2016 will be a record year for the Adidas Group with truly exceptional results," said CEO Kasper Rorsted. "Going forward, it is our job to make this fantastic company even better. We will ensure that the Adidas Group remains a growth company that delivers sustainable top- and bottom-line improvements in the years to come as outlined in our long-term strategic business plan 'Creating the New.'"