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Adidas Predicts 2016 Profit Will Hit the Billion-Euro Mark, Kylie Jenner and Rihanna Drive Sales at Puma

As we settle into the new year, our Sourcing Summit Companion Report looks ahead at ways to optimize processes and performance.



Amid rumors that Cabela’s (CAB) is on the verge of being acquired by Bass Pro Shops, the Sidney, Nebraska-based outdoor sports retailer on Thursday reported that profits declined 5.7% to $37.8 million and diluted earnings per share were $0.55 in the second quarter of fiscal 2016. Total revenue climbed 11.2% to $929.9 million, thanks to both a 13.3% increase in retail store sales and a 3.3% bump in non-store sales, while revenue from the retailer’s credit card business jumped 8.1%. Cabela’s stock is up 12.69% year-to-date.


German sporting goods group Adidas raised its 2016 outlook for the fourth time this year Thursday, after reporting a 13 percent increase in revenues in Q2 to 4.4 billion euros ($4.9 billion) as well as a massive 77 percent leap in operating profit to 414 million euros ($459 million). To that end, Adidas now expects currency-neutral sales to increase at a rate in the high teens in 2016 (previous guidance pegged it at 15 percent) and projects net income from continuing operations to be between 975 million euros ($1.08 billion) and 1 billion euros ($1.1 billion).


So far, so good for French retailer Carrefour in 2016, which opened 410 new stores in the first half of the year and—excluding currency shifts—achieved a 2.2% increase in net sales to reach 40.55 billion euros ($44.96 billion). Despite unfavorable weather conditions, operating margin was up 1.8% in France, while other European countries recorded an increase of 30 basis points. One emerging market was particularly strong: like-for-like sales in Latin America grew 14.5%.


High-end coat brand Moncler, which is slated to open a new flagship store in New York before the end of the year, said Wednesday that revenues rose 17 percent in the first half of 2016 to 346.5 million euros ($384.2 million), citing strong growth in all regions and distribution channels. However, profits decreased from 34 million euros ($37.7 million) in the year-ago period to 33.6 million euros ($37.2 million) this year.


Synthetic recycled yarn producer Unifi (UFI) suffered a sales decline in its fourth quarter, down from $175 million last year to $163.9 million, and blamed the devaluation of the Brazilian real and lower selling prices. As such, net income was $10.2 million, compared to $15.6 million in the fourth quarter of fiscal 2015. Shares are down 2.74% year-to-date.

Gildan Activewear

Sluggish store traffic trends and continued weakness in the department store and national chains channels impacted Gildan Activewear (GIL) in the second quarter. Net sales decreased 3.5%, from $714.2 million to $688.9 million, as branded apparel sales tumbled 7.9% and printwear fell 1.4%. Net earnings dropped 4.7%, from $99.4 million, or $0.41 per share, to $94.7 million, or $0.40 per share.


Bonmarché, a U.K. women’s value retailer, blamed poor weather for a 3.6% decline in sales in the first quarter of fiscal 2017. Like-for-like sales dropped 7.7%, with stores suffering an 8.1% decrease and e-commerce down 2.7%. Nonetheless, the retailer left its full-year guidance unchanged.


Puma said Wednesday that products and marketing around Rihanna and Kylie Jenner are driving results for the German activewear brand. Sales improved 7 percent to 827 million euros ($916.89 million) in the second quarter, with all segments contributing to the growth. Apparel was the best of the bunch, with sales up 13.6% to 299.1 million euros ($331.6 million), followed by a 10.9% increase in accessories. But a strong U.S. dollar bruised gross profit margin, which declined 45.6%.

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