Adidas AG (ADR) (ADDYY) Posts Wide Q4 Loss on Tax Charge

Advertisement

Adidas AG (ADR) (OTCMKTS:ADDYY) reported its latest quarterly results on Wednesday, unveiling a wider loss than in the year-ago quarter.

Adidas AG (ADR) (ADDYY)For its fourth quarter, the athletic apparel maker posted a net loss of EUR41 million ($50.7 million), more than quadrupling its year-ago loss of EUR10 million ($12.37 million). The decline was caused mostly by a one-time tax charge.

Adidas added that its revenue came in at EUR5.06 billion ($6.26 billion), marking a 12% increase year-over-year due in part to a 21% gain in its North American stores. The apparel company also announced that it will increase its dividend from EUR2 per share in the year-ago quarter to EUR2.60 per share.

Adidas said it will propose a dividend of EUR2.60 (3.22) a share, compared with a dividend EUR2.00 (2.47) a share a year prior. For fiscal 2018, the company predicts that its currency-adjusted revenue will surge 10% year-over-year.

North America and Asia-Pacific are key areas for the company, where it sees revenue increasing by double digits to go along with a mid one-digit sales increase in western Europe and Latin America. Adidas adds that it projects its 2018 gross margin to rise 50.7% and its 2018 operative margin to pop between 10.3% and 10.5%.

Profit is slated to be between EUR1.62 billion ($2 billion) and EUR1.68 billion ($2.08 billion). Revenue is slated to grow between 10% and 12% from 2015 to 2020, Adidas adds.

ADDYY stock gained about 9.4% on Wednesday despite the earnings decline thanks to the company’s higher outlook.


Article printed from InvestorPlace Media, https://investorplace.com/2018/03/adidas-ag-adr-addyy/.

©2024 InvestorPlace Media, LLC