Why Did Adidas Increase Its Expectations Again After Its March Annual Report?

Before Wednesday, the world's second largest sporting goods group Adidas AG

The group issued a statement that it raised the 2016 financial year and first quarter expectations again after the March annual report. The group said its group revenue growth in the first quarter of fiscal year 2016 is expected to reach 17%, and the fixed exchange rate is as high as 22% to 4 billion 800 million euros.

Adidas AG Adidas group also said that due to higher gross margins and operating costs, the group's operating profit growth in the first quarter of fiscal year 2016 is expected to reach 35% to 490 million euros, and net profit from continuing operations is expected to grow 38% to 350 million euros, or 1.74 euros per share, compared with 1.17 euros in the same period last year.

Adidas AG Adidas group said it is based on the current profit forecast.

Strong growth momentum depends.

At the same time, the Adidas AG Adidas group raised its annual revenue growth forecast from 15% to 10%-12%, and expected net profit growth from 15%-18% for the whole year. The previous forecast is also 10%-12%.

As for more details, Adidas AG Adidas group said it would disclose its earnings at the first quarter of May 4th.

Stimulated by news, Adidas AG (ADS.DE), Adidas group opened up more than 6% at the end of the deadline. At 9:31, Frankfurt time, the stock was reported to be 113.20 euros, up 5.20%.

Adidas AG Adidas group accelerated its competitor Nike Inc. (NYSE:NKE) in the past year.

In addition, the group will usher in a new CEO Kasper Rorsted this year.

In the early March, the annual report of the German sports giant showed that group income increased by 16.4% to 16 billion 915 million euros in the 2015 fiscal year, exceeding the market forecast of 16 billion 700 million euros, an increase of 10% under fixed exchange rate, and an adjusted net profit growth of 12.2% to 7.20 euros from continuing operations, which also surpassed the 711 million euros expected by the market.

Adidas AG Adidas group said the group's strong recovery was mainly benefited from double digit growth in Western Europe, Greater China and Latin America. The group's two largest brands, Adidas Adidas and Reebok Reebok, grew by 12% and 6%, respectively, of which Reebok Reebok grew for 11 consecutive quarters.

In 2016, there were many sports events held in the world, including the European Cup, the Centennial cup and the Olympic Games. In particular, the top two entries were sponsored by Adidas AG Adidas group.

Despite the first quarter results released by the world's largest sports shoe maker, 9904.TW, Taiwan Yuyuan Industrial (Holdings) Holdings Limited (0551.HK), the growth of the sports shoes market has slowed down, but the market is expected to pick up in the two or three quarter as sports events approach.