It seems that Chinese consumers are more keen to purchase adidas. In the first nine months of 2016, sales in Greater China recorded the fastest global growth of up to 25%. Excluding exchange rate factors, sales in Greater China increased by 28%. One of the major strategies developed by the Group to achieve its 2016 business growth is bold retail expansion. As of this quarter, adidas Greater China has more than 10,000 stores, and the Group will open 12,000 stores in Greater China by 2020. Reproduced from: China Clothing Talent Network
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Colin Currie, Managing Director of the adidas Group Greater China for the German sports brand, pointed out that sports performance series and sports fashion series have become strong drivers of growth. All brands under the brand achieved strong double-digit growth this quarter, which fully proves adidas's relationship with China. The appeal of consumers is gradually increasing.
In the third quarter of September 30, the group’s net profit rose by 24.2% year-on-year to 387 million euros. Under the strong promotion of its brands adidas and Reebook, net sales of the group increased 14% from the same period last year to 5.41 billion euros. Operating profit increased by 11% year-on-year to 563 million euros.
Among them, the Group's major brand, adidas, continued to maintain a positive growth momentum. Sales grew 15.8% year-on-year on a currency-neutral basis. The Group said it mainly benefited from the sales growth of adidas original and adidas Neo. Adidas Originals is Adidas's classic sports series, and now its Stan Smith and NMD have many fans around the world.
The Group stated that except for the single-digit growth rate in Russia, the company achieved double-digit growth in other regions of the world. In the regional market, sales in Greater China, North America and the Middle East, Asia, and Africa increased by 18% to 20% year-on-year, and sales in the Japanese market increased by 42%.
Based on the third-quarter financial report's full-year forecast, adidas report said that the full-year net profit is expected to be between 975 million euros and 1 billion euros, gross margin is expected to be in the range of 48.0%-48.3%, and operating margin is expected to increase by 7.5% .
Due to strong growth in performance, adidas' share price so far this year has registered a cumulative increase of 62%, with a market value of approximately 28.276 billion euros, or US$31.37 billion. In contrast, its main competitor Nike, the group's stock price has fallen so far this year is about 20%, the current market value of 82.046 billion US dollars.
Kasper Rorsted, who took over from Herbert Hainer as the new chief executive on October 1, pointed out that adidas' performance this year is worth remembering. The performance of the group has been leaps and bounds, regaining the position of the second largest sports brand in the United States. Kasper Rorsted said that the strong growth momentum of the Group in all important markets underscores the power of adidas' new strategy, which effectively enhances the adidas' global appeal. Looking ahead, he emphasized that adidas will be made better, and will continue adidas' continued sales growth and profit growth in the coming years. 
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