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Adidas Q1 Profit Soars; Upgrades FY21 Sales Outlook - Quick Facts

German sportswear maker Adidas AG (ADDYY.PK,ADDDF.PK) reported Friday that its first-quarter net income attributable to shareholders surged to 558 million euros from last year's 31 million euros.

Earnings per share were 2.86 euros, up from 0.16 euro last year.

Net income from continuing operations increased to 502 million euros from last year's 26 million euros. Earnings per share from continuing operations reached 2.60 euros, compared to 0.16 euro a year ago.

Net sales climbed 20.2 percent to 5.27 billion euros from last year's 4.38 billion euros. Currency-neutral sales went up 27 percent, driven by increases in all market segments.

Further, the company upgraded fiscal 2021 outlook. sales now expected to grow at a high-teens rate in 2021 given the healthy brand momentum and stronger-than expected demand for the brand's products.

The company previously expected sales to grow at a mid- to high-teens rate.

In the second quarter, adidas forecasts a significant topline
acceleration, with currency-neutral sales expected to increase by around 50 percent.

The company's full-year gross margin forecast continues to be for a level of around 52.0 percent, up from last year's 50 percent, while the operating margin is still expected to increase to a level of between 9 percent and 10 percent, up from 4 percent last year.

Net income from continuing operations is still projected to increase to a level of between 1.25 billion euros and 1.45 billion euros, higher than last year's 461 million euros.

adidas CEO Kasper Rorsted said, "We upgrade our full-year outlook as we are now even more confident about a strong top-line recovery this year, even though the environment is not yet back to normal. Our strategy 'Own the Game' is off to a great start and 2021 will be an important first step in successfully executing against our 2025 ambition."

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