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Adidas Raises 2024 Guidance Again, Citing Good Brand Momentum

An Adidas shoe is seen in a store at the Woodbury Common Premium Outlets in Central Valley, New York, US, February 15, 2022. (Reuters)
An Adidas shoe is seen in a store at the Woodbury Common Premium Outlets in Central Valley, New York, US, February 15, 2022. (Reuters)
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Adidas Raises 2024 Guidance Again, Citing Good Brand Momentum

An Adidas shoe is seen in a store at the Woodbury Common Premium Outlets in Central Valley, New York, US, February 15, 2022. (Reuters)
An Adidas shoe is seen in a store at the Woodbury Common Premium Outlets in Central Valley, New York, US, February 15, 2022. (Reuters)

Adidas on Tuesday raised its full-year sales and profit guidance, citing better than expected performance in the third quarter and good brand momentum as it benefits from popularity of its three-striped Samba and Gazelle shoes.

The German sportswear brand raised its forecasts for the third time this year, saying it now expected currency-neutral revenues to increase by around 10% this year, having previously forecast a high single-digit rate.

Adidas also raised its profit forecast for the year to 1.2 billion euros ($1.31 billion) from 1 billion euros.

Over the third quarter, Adidas revenue grew 7% to 6.438 billion euros, slightly above analysts' estimates of 6.416 billion euros.

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Fashion

LVMH Third-Quarter Sales Fall 3% as China Weighs

Logo of Dior brand is seen outside a Dior store in Paris, France, January 27, 2020. (Reuters)
Logo of Dior brand is seen outside a Dior store in Paris, France, January 27, 2020. (Reuters)
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LVMH Third-Quarter Sales Fall 3% as China Weighs

Logo of Dior brand is seen outside a Dior store in Paris, France, January 27, 2020. (Reuters)
Logo of Dior brand is seen outside a Dior store in Paris, France, January 27, 2020. (Reuters)

French luxury giant LVMH reported a 3% fall in third-quarter sales on Tuesday, its first decline in quarterly sales since the pandemic, as rising prices and economic uncertainty held back shoppers.

Revenue for the world's biggest luxury group was 19.08 billion euros ($20.8 billion) for the three months ending in September, a 3% fall on an organic basis, stripping out the effect of currencies, acquisitions and divestitures.

The figure missed a consensus estimate of 2% organic growth, according to Barclays.

The numbers will offer little reassurance to jittery investors who already had low expectations for the quarter.

The fashion and leather goods division, home to Louis Vuitton and Dior labels, reported a decline of 5%, well below consensus expectations for 4% growth, and the first decline for the business since 2020 during the height of the pandemic.

Fashion and leather goods comprise almost half of LVMH revenue and nearly three-quarters of its recurring profit.

Investors have grown nervous about the luxury goods sector since a post-pandemic spending spree lost momentum last year, with Chinese appetite for high end fashion a major source of concern. The country's property crisis has weighed on shoppers' confidence, and hopes that government stimulus measures could quickly reignite enthusiasm for high-end merchandise have yet to be fulfilled.

UBS has predicted that the third quarter will be the worst for the sector in four years, with a 1% decline in organic sales year-on-year.