By Joshua Kirby


Adidas AG posted first-quarter sales above consensus Friday, triggering a rise in its share price. At 0835 GMT, shares in the German sporting-goods company traded 8% higher at EUR279.50. Here's what we watched:


SALES: Quarterly sales came in at 5.27 billion euros ($6.36 billion), up 27% at constant currency from EUR4.38 billion in the first quarter of 2020. Analysts had expected sales of EUR5 billion, according to FactSet.


OPERATING PROFIT: Earnings before interest and taxes stood at EUR704 million, up more than tenfold compared with the same period the previous year, and well ahead of FactSet-compiled consensus expectations of EUR575 million.




-CHINA POSITIVES: Sales in greater China rocketed in the quarter, increasing by 156% to EUR1.40 billion, though with an easy comparison base against 2020's pandemic-hit first quarter.

-CHINA NEGATIVES: Adidas didn't allude to any potential negative effect from a consumer boycott in China relating to its stance on cotton produced in the Xinjiang region. However, an upgrade to organic-growth guidance suggests management is not expecting any material drag from the issue, analysts at Jefferies say. The issue is likely to be raised at a conference call later Friday.

-MARGIN CALL: Adidas's gross margin increased by 2.1 percentage points to 51.8%, close to 2019's full-year figure. The margin was boosted by lower sourcing costs and favorable channel and market mix, the company said.


Write to Joshua Kirby at; @joshualeokirby


(END) Dow Jones Newswires

May 07, 2021 04:54 ET (08:54 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
Historical Stock Chart
From Jul 2021 to Aug 2021 Click Here for more Adidas (QX) Charts.
Historical Stock Chart
From Aug 2020 to Aug 2021 Click Here for more Adidas (QX) Charts.