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Third-quarter sales rose a currency-adjusted 6% to 6.41 billion
euros ($7.10 billion), beating analysts' mean forecast of 6.32
billion euros, although footwear sales were up just 1% measured
against a major Yeezy launch last year.
That also reined in ecommerce growth to 14% from 37% in the
second quarter as many of the Yeezy shoes were sold online.
Adidas decided to limit supplies of Yeezy products this year to
maintain their exclusivity, Chief Executive Kasper Rorsted told
journalists.
Shares in Adidas, which have risen by more than a third in the
last year, were down 2.9% at 1046 GMT.
Adidas has eroded Nike's <NKE.N> dominance of the U.S. market in
recent years, helped by partnerships with celebrities like Kanye
West, but Nike has been growing faster in China and Europe, a
trend that continued in the latest results.
Nike reported sales rose a currency-neutral 10% for the quarter
ended Aug. 31, with sales in China up 27%, though 4% growth in
North America missed expectations.
Adidas's sales growth slowed to 11% in China in July-September
from 14% in the second quarter, but accelerated in North America
to 10% as the company fixed supply chain problems that had
dented growth earlier in the year.
However, higher air freight costs to speed products to North
America to counter difficulties meeting demand for mid-market
clothing weighed on profitability, with quarterly operating
profit flat at 897 million euros.
The supply chain issues should only have a minimal impact on the
fourth quarter, Rorsted said, adding he expected a significant
acceleration in the period, when Adidas is set to launch its
first products in a partnership with singer Beyonce.
The fourth quarter will get support from products for the
European soccer championships like the official replica ball,
along with an earlier Chinese New Year and the opening of a new
flagship store in London, where sales have been encouraging.
"We are very confident about how the last two months of the year
will unfold," Rorsted said.
Rorsted confirmed he expects 2019 net income from continuing
operations of between 1.88 billion and 1.95 billion euros and
said he now sees currency-neutral sales growth coming in at
around 6.5%, the midpoint of the forecast range of 5-8%.
(Reporting by Emma Thomasson; Editing by Michelle Martin and
Mark Potter)
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