Adidas Shares Surge as It Aims for China Growth This Year
09 Março 2022 - 5:58AM
Dow Jones News
By Joshua Kirby
Shares in Adidas AG rise sharply Wednesday after the German
sporting-goods major set out optimistic guidance for 2022,
including a return to organic growth in China, despite a
disappointing end to last year.
At 0820GMT, shares were trading 6.6% higher at EUR197.20.
Fourth-quarter revenue came in below company-compiled consensus
expectations at 5.14 billion euros ($5.60 billion), with Greater
China suffering a 24% organic decline amid a challenging market
environment, Adidas said, setting out 2021 results earlier
Wednesday. Nevertheless, the company expects to see a return to
Chinese sales growth for 2022, contributing to overall group growth
of 11% to 13%. Adidas is also aiming for expansion in its gross and
operating margins this year.
The revenue target is higher than previous guidance for the
year, and all the more ambitious since it includes a EUR600 million
drag in the first quarter on supply shortages, as well as a risk of
up to EUR250 million from the Russia-Ukraine crisis, analysts at
Bryan Garnier said.
The guidance is reassuring, Citi concurred. Nevertheless, the
fourth-quarter miss will remain a cause for concern given the
continued weakness in China and underwhelming performance in the
United States, the bank said.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
March 09, 2022 03:43 ET (08:43 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Adidas (TG:ADS)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Adidas (TG:ADS)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024
