Adidas is picking up its pace. The German athletic company reported growth across sectors in the first quarter of 2017, with revenue up 16 percent.
Net income increased 30 percent to 445 million euros ($487 million). The Adidas brand itself increased 18 percent while Reebok increased 13 percent. Sales increased to 5.67 billion euro ($6.2 billion), up from 4.77 billion euro ($5.22 billion) during the same period last year.
A major source of sales for Adidas lies in the running and outdoor categories, where the brand saw double digit growth, and in e-commerce. Adidas saw an increase of a whopping 53 percent in e-commerce during the first quarter.
“As consumer demand for our products was strong across the world, we were again able to significantly improve our profitability despite ongoing currency headwinds. Building on this performance, we are confirming our full-year guidance. We aim to deliver double-digit revenue growth and an over-proportionate profitability increase in 2017 yet again,” said Adidas CEO Kasper Rorsted.
Net sales for Western Europe increased 10 percent. The Adidas brand saw an 8 percent increase, while the Reebok brand increased 25 percent.
North American net sales grew 31 percent to $1.1 billion, up from $796 million during the same period last year. The Adidas brand saw a 36 percent increase during the first quarter, whereas the Reebok brand saw only a 2 percent increase.
China’s net sales growth increased 30 percent to 990 million euros, or $1.1 billion. The Adidas brand saw substantial growth in Greater China, with sales increasing approximately 31 percent, while the Reebok sales increased 22 percent.
Russia was one of the only countries to see a sales decline. Sales for Russia decrease 10 percent. However, Reebok brand revenues increased 6 percent on a currency-neutral basis, due to the double-digit sales increase in the training sector.
Adidas’ Latin America business reported sales increased 9 percent. The Adidas brand increased 7 percent, driven in part by double-digit sales growth at Adidas Originals and Adidas Neo. Reebok brand sales increased 25 percent due to double-digit growth in the running, training and Classics areas. Adidas reported Mexico, Peru, Chile and Uruguay as some of the main contributors to the increase.
Japanese sales grew 21 percent to approximately $329 million, up from 236 million euros, or $258 million, during the same period last year. Both Adidas and Reebok saw sales increase 21 percent.