PARIS – Adidas AG on Wednesday raised its earnings guidance until 2020, following a record 2016, when the German activewear giant’s profits passed the billion-euro mark for the first time.
The company on Wednesday said it intends to strongly accelerate sales and earnings growth until 2020 as part of its “Creating the New”‘ long-term strategic business plan. Net income is now expected to grow between 20 percent and 22 percent on average annually over the next three years.
“After the first full year of ‘Creating the New,’ we have exceeded our original plan,” said Kasper Rorsted, chief executive officer of Adidas AG, in a statement. “Now we have developed additional initiatives which will accelerate [its] execution… and [that] enable us to significantly increase our targets for 2020.”
The sporting goods firm recorded a net loss of 10 million euros, or $10.8 million, in the fourth quarter ended Dec. 31, versus a net loss of 44 million euros, or $48.8 million, in the same prior-year period. Sales for Adidas in the three months ended Dec. 31, 2016, rose 12 percent to 4.69 billion euros, or $5.1 billion.
Full-year net income at the Herzogenaurach, Germany-based company advanced 59.3 percent to 1.02 billion euros, or $1.13 billion. Sales were up 14 percent to 19.29 billion euros, or $21.35 billion, driven by double-digit sales increases in its Sport Performance category as well as in the Adidas Originals and Adidas Neo lines. All geographic markets also registered double-digit gains.
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