Shares of Adidas AG (ETR: ADS) are trading over 3% lower today to extend yesterday’s losses of 5.79% after reporting lower sales guidance.
The German sportswear giant said that its Q3 sales plunged by 3% to 5.96 billion euros to drag operating profit down by 12% to 794 million euros. Still, this is better than 5.91 billion in revenue and 723 million euros in operating profit expected from the market.
Adidas added that it expects its sales to decline again in the fourth quarter with only 60% of its stores in Europe open. As a result, the firm now expects a fourth-quarter operating profit to come between 100 million and 200 million euros, which is below the market consensus.
“While at the beginning of the quarter we were on track for growth in Q4, a worsening of the pandemic in many regions of the world is again requiring our patience and support,” Chief Executive Kasper Rorsted said.
“The short-term outlook appears less constructive given the current shape of demand and a rebuild in costs,” Jefferies analyst James Grzinic wrote in a note.
Adidas share price hit 270.00 today, which is about 10% lower compared to Monday’s closing price.
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