Adidas to buy back up to $3.7 bln of its shares

Cornelia Mascio
Marzo 14, 2018

Adidas forecast another year of sales and profit growth for 2018, albeit at a slower pace than in 2017, as the German sportswear firm reported fourth-quarter sales that undershot analyst forecasts and a net loss due to a one-off US tax hit.

Net profit at the group grew 7.8 percent to 1.1 billion euros ($1.4 billion) past year, on the back of revenues up nearly 15 percent at 21.2 billion euros.

Adidas, which has seen its shares fall 15 percent in the past six months as its growth cooled, said late on Tuesday it plans to buy back up to 3 billion euros ($3.72 billion) worth of its shares by 2021, or nearly 9 percent of its share capital.

In 2017, adidas reported an increase in currency-neutral revenues of 16%.

Among Adidas' own-brand products, there were double-digit sales increases for running products and its Originals and Neo fashion lines, while subsidiary Reebok booked strong growth in shipments of its Classics products.

Operating, or underlying profit grew nearly 31 percent, to 2.1 billion euros.

The group expects currency-adjusted sales to grow around 10 percent in 2018, combining with efficiency savings to produce an operating profit between 9.0 and 13 percent higher. In euro terms, sales were up 15% to 21.218 billion euros in 2017 from 18.483 billion euros, prior year. The company projects the operating margin to increase between 0.5 and 0.7 percentage points to a level between 10.3% and 10.5%.

The company has also upgraded its 2020 profitability target.

Adidas said it already has shareholder approval for the repurchase of 9 percent of its share capital.

Adidas said in a statement that the ‍new buyback is in addition to company's policy to pay a dividend in the range of 30-50 percent of net income from continuing operations.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE