As a result of a strong first six months, Adidas announced that it is increasing its 2017 outlook.
The company reported Thursday that second quarter continuing operations increased 19 percent to 5 billion euros, while operating profit grew 18 percent to 505 million euros, or $593 million. The brand says that the operating profit improved due to a higher gross margin and operating expense leverage. Net income from continuing operations increased 16 percent to 347 million euros, approximately $407 million, during the time period.
The company now expects 2017 sales to grow at a rate between 17 percent and 19 percent, as opposed to previously forecast, 12 percent to 14 percent. Adidas expects a year-over-year gross margin improvement during the second part of 2017. Net income from continuing operations is now expected to increase 26 percent to 28 percent in 2017. Previous estimates were between 13 percent and 15 percent.
Adidas noted that due to already signed agreements to divest TaylorMade, Adams Golf, Ashworth and CCM Hockey brands, the results from the businesses are reported as discontinued operations. Adidas also announced Thursday that the CCM Hockey brand will be sold to a new affiliate of Canada’s Birch Hill Equity Partners. The company’s continued operations of Adidas and Reebok were not affected.
The company will announce its full quarterly results Aug. 3.