At a glance, the 8pp gap between currency-adjusted revenue growth of 10% and the reported growth rate of 2% looks like a threat. However, Adidas and its peers are sourcing almost all of their products in Asia and purchase prices are typically denominated in US dollars. As a large share of their revenue is generated in countries with strong currencies (e.g. Western Europe, almost 30%), the gross margin has increased considerably.
03 May 2018
Lower than expected revenue but much higher profits
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
Lower than expected revenue but much higher profits
adidas AG (ADS:WBO) | 0 0 1.8% | Mkt Cap: 37,743m
- Published:
03 May 2018 -
Author:
Hans-Peter Wodniok -
Pages:
2
At a glance, the 8pp gap between currency-adjusted revenue growth of 10% and the reported growth rate of 2% looks like a threat. However, Adidas and its peers are sourcing almost all of their products in Asia and purchase prices are typically denominated in US dollars. As a large share of their revenue is generated in countries with strong currencies (e.g. Western Europe, almost 30%), the gross margin has increased considerably.