German sportswear firm Adidas reported stronger-than-anticipated second-quarter net profit on Thursday, with the company saying it remains firmly on track to hit its full-year targets despite taking an impairment charge on its struggling Reebok brand.
Net profit over the second quarter rose 20 percent to 418 million euros ($485 million), beating analyst expectations of 387 million euros.
Kasper Rorsted, who took over as CEO in 2016 after a series of profit warnings, has sought to place a greater emphasis on profitability at Adidas — although the company still lags behind U.S.-based rival Nike.
Here are the key second-quarter metrics:
- Net profit: 418 million euros ($485 million) vs. 387 million euros expected, according to Thomson Reuters.
- Sales: 5.3 billion euros vs. expected 5.2 billion euros, according to Thomson Reuters.
Sales came in at 5.3 billion euros, a rise of 10 percent after currency effects, and ahead of average analyst estimates for a rise of 8 percent.
Nonetheless, the company announced it was taking a medium triple-digit million euro impairment regarding its Reebok brand after the German Financial Reporting Enforcement Panel disagreed with how the firm calculated historical book value.
Adidas said this retrospective accounting move would have no impact on its full-year 2018 results.