Adidas AG reported better-than-expected earnings in the first quarter as consumers continue to snap up retro sneakers like the Samba in the face of growing economic uncertainty.
The German sportswear company posted an operating profit of â¬610 million ($692 million) in the quarter, according to a statement Wednesday, exceeding the â¬545 million average of analyst estimates. Revenue of â¬6.2 billion was in line with estimates.
Adidas continues to ride a two-year hot streak, with demand strong for classic shoe models that also include the Gazelle and thin-soled options like the Tokyo and Taekwondo. Thatâs helping the German brand gain back market share from Nike Inc., which has dominated the industry for decades.
Adidasâ depository receipts gained as much as 5 percent in US trading after the preliminary earnings announcement, which was released after the close of normal trading in Frankfurt. The company will publish its full first-quarter figures on April 29.
Like other sneaker makers that produce many of their shoes in Asia, Adidas has been buffeted by President Donald Trumpâs tariff threats. The company made no mention of forward guidance in its statement.
Adidas is no longer selling any products from its canceled Yeezy partnership with the entertainer Ye, which had boosted sales a year earlier.
By Tim Loh
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