Adidas AG (ADS.XE) on Wednesday raised its outlook for 2018 on the back of strong third-quarter results.
The German sporting-goods company said it now expects net income from continuing operations of between 1.66 billion euros and 1.72 billion euros ($1.89 billion and $1.96 billion), an increase of between 16% and 20% on the year previous.
However, Adidas projects currency-neutral revenue growth of between 8% and 9% compared with previous forecasts of around 10%. The company blamed the cut to estimates on lower-than-expected growth in Western Europe.
Adidas said it expects the gross margin to improve by up to 1% and this, together with the projected top-line growth, should result in an increase in operating profit of around 12% and 16%.
The company said revenue in the third quarter was EUR5.87 billion, up 8% on a currency-neutral basis.
Adidas said its third-quarter operating profit rose 13% to EUR901 million.