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Adidas Q4 profit rises

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Christian Fernsby ▼ | March 11, 2020
Adidas reported that its fourth quarter net income attributable to shareholders rose to 167 million euros or 0.85 euros per share from 108 million euros in the previous year.
Adidas   Operating profit in Greater China is anticipated to decline
The company expects revenues in Greater China in the first quarter of 2020 to be between 0.8 billion euros and 1.0 billion euros below the prior year level. Operating profit in Greater China is anticipated to decline between 0.4 billion euros and 0.5 billion euros in the first quarter.

Topics: Adidas

In addition, the company has started to observe traffic declines with a corresponding negative business impact in Japan and South Korea.

Net income from continuing operations for 2020 is expected to increase to a level between?2.100?billion euros and 2.160?billion euros, reflecting an increase of

etween 10% and 13% compared to the prior year level of 1.918 billion euros. The company projects sales to increase at a rate of between 6% and 8% on a currency neutral basis in 2020 driven by growth in all market segments.

The currency neutral sales are projected to grow at a low double digit rate in North America and Russia CIS. The currency neutral revenues in Asia Pacific and Emerging Markets are expected to grow at a high single digit rate.

Sales in Europe and Latin America are forecast to improve at a mid single digit rate in currency neutral terms.

The company's outlook for 2020 does not reflect the impact of the coronavirus outbreak, the company said.

Adidas said it already implemented a number of measures, including temporary closures of office locations and stores as well as travel restrictions. The company will continue to provide close guidance to employees and take all appropriate steps to protect them as the situation develops.

The company said it remains fully confident about its future growth prospects, despite the temporary challenges posed by the coronavirus outbreak.

The company's sales for the fourth quarter rose 12% to 5.838 billion euros from 5.234 billion euros in the prior year.

Adidas revenues increased 10% on a currency neutral basis. The development reflects an increase of 11% at brand adidas, due to double digit growth in both Sport Inspired and Sport Performance. The latter was driven by double digit growth in the training, running and basketball categories.

Quarterly revenues at the Reebok brand grew 7%, driven by double digit growth in Sport and a high single digit growth rate in Classics.