adidas Group: Reassuring Q2 results and FY15 outlook confirmed despite golf business dragNEUTRAL, Fair Value EUR79 (+6%)
Q2 15 sales came in at EUR3.91bn above CS at EUR3.81bn, up 14.9% reported and 5% FX-n (BG ests: +4.4%e). The slowdown vs. Q1 (+9% FX-n) was well-flagged by the market given tough comps (Q2 14: +10% vs. flat in Q1, boosted by 2014 World Cup). Momentum remained good at adidas (+8% vs. +11% in Q1) and Reebok (+6% vs. +9%) TMaG disappointed again (-25.5% vs. -9%). The adj. operating margin contracted 40bps to 6% (CS: 5.9%), affected by the GM decline (-90bps). All FY15 targets were confirmed. Conference call this afternoon at 3:00pm (CET).