BERLIN, Nov. 7 (Xinhua) -- German sportswear manufacturer Adidas recorded a steep increase in profits during the third quarter (Q3) of 2018, the company's earnings figures showed on Wednesday.
Gross revenue at Adidas was measured at 5.87 billion euros (6.7 billion U.S. dollars) in Q3, marking a 3-percent increase compared to the same period last year.
Operating profit was recorded by the Herzogenaurach-based company at 901 million euros (plus 13 percent), while net profit from continuing operations came in at 656 million euros (plus 19 percent).
"We delivered high-quality growth again in Q3. The top-line expansion was driven by double-digit increases across our strategic growth areas North America, China and e-commerce," a statement published online by Adidas chief executive officer (CEO) Kasper Rorsted read.
As was already the case in Q2, the sportswear manufacturer emphasized that quarterly increases in revenue had been achieved in spite of currency re-related headwinds between July and September. Once adjusted for, Q3 revenue would have grown at an even faster pace of eight percent.
Aside from a lasting boom in e-Commerce revenue (plus 76 percent), Adidas further highlighted that the combined sales of its Adidas and Reebok brands grew particularly strongly in North America (plus 16 percent) and Asia-Pacific (plus percent 15 percent) in Q3. Growth in the latter region was mainly driven by a 26 percent increase in China.
Revenues in Russia and the former Soviet Union also increased by 7 percent as the positive impact from World Cup-related sales offset several store closures.
In light of the strong financial performance in the first nine months of 2018, Adidas increased its profitability outlook for the year. However, the company now also expects currency-neutral revenues to grow at the lower end of its previously communicated range for 2018 at between 8 percent and 9 percent due to lower-than-expected growth in western Europe.
"With these results, we are confident to reach a higher-than-expected profitability level in 2018 and remain firmly on track to achieve our long-term targets until 2020," Rorsted predicted.
Adidas is Europe's largest and the world's second largest sportswear producer, recording total annual revenue of 21.2 billion euros in 2017. The 93-year old company is publicly-listed on the German DAX stock exchange and employs more than 56,000 workers internationally.
