German sportswear firm Adidas hiked its 2018 profit guidance, citing a strong financial performance in the first nine months of the year, but trimmed revenue target due to weaker-than-expected growth in western Europe.
While Adidas has been taking market share from bigger rival Nike in North America, the U.S. firm has been powering ahead in Europe, Middle East and Africa, where its sales rose 9 percent in the three months ended August.
Adidas CEO Kasper Rorsted told CNBC on Wednesday that the company had seen a "stellar quarter" and would see a stellar year.
"Despite the fact that we're investing more than ever in our company and in managing investments, we will have the highest margin in the history of the company which is 10.8 percent by the end of the year so we're extremely happy with the overall run of our business, particularly in the U.S., in Asia and online," he told CNBC's Squawk Box Europe.
Adidas had already warned that sales in western Europe were likely to stay flat in the second half of the year after the company failed to focus enough on the launch of more products.