adidas: Good underlying Q4 12; 2013 guidance OK
BUY, Fair Value EUR82 (+14%)
adidas published Q4 12 underlying EBIT that was above consensus (EUR26m vs. EUR15m expected). FX-neutral sales growth decelerated to +1% in Q4 from +4% in Q3 and +7% in Q2. 2013 guidance calls for mid-single digit FX-neutral sales growth which compares with our expectation of +6%. Management also confirmed the 2013 EBIT margin would approach 9%, with EPS of EUR4.25-4.40 (which seems conservative). A conference call / analysts’ meeting is scheduled at 2.30pm CET.
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