adidas Group: Impressive Q3 numbers, a more optimistic outlookNEUTRAL, Fair Value EUR79 (-3%)
Q3 15 sales increased c.18% as reported and 13% FX-n to EUR4,758m, or 5% above CS expectations at EUR4,521m. The FX-n growth has significantly accelerated vs. Q2 (+5%), boosted by a stellar growth at adidas (+14%) and a slight rebound at TMaG (+6.5% vs. -26% in Q2). Operating profit came in at EUR505m, well above CS (EUR447m), representing a 70bp-increase in the operating margin to 10.6% (CS: 9.9%). Consequently ADS is revising up its FY15 sales and earnings targets: (i) the top line is now expected to increase at a HSD rate FX-n (vs. MSD previously) and (ii) adj. net income from continuing operations should grow “around 10%” (vs. +7-10% initially). Conference call this afternoon at 3pm (CET).
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