Adidas shares advanced on Wednesday as the apparel maker boosted its full-year guidance.
Adidas shares
ADS,
rose 4% as the company pre-released its third-quarter numbers, reporting a 27% decline in operating profit on a 6% fall in revenue. Adidas said its results were helped by selling its remaining Yeezy inventory, as well as a “better than expected” performance of its underlying business.
Adidas said it’s now forecasting adjusted operating profit of around €100 million for the year, vs. previous guidance of break even, on a low-single digit decline in currency-neutral revenue, vs. a previous estimate of a mid-single-digit decline.
Analysts at Stifel say the implied guide for the fourth quarter is “highly conservative.” “From one company to another, [Adidas CEO] Bjorn Gulden has pursued a guide low/beat-and-raise communication strategy even since FY22 results,” said the analysts. Shares of Gulden’s former company, Puma
PUM,
rose 3%.
Also rising were shares of Just Eat Takeaway
TKWY,
as the delivery service company’s stock gained 7% after boosting guidance and launching a €150 million stock buyback, while ASML Holding
ASML,
shares fell 5% as the chip equipment maker’s orders came in far below consensus estimates.
The major European stock market indexes — the German DAX
DX:DAX,
French CAC 40
FR:PX1
and U.K. FTSE 100
UK:UKX
— declined after a rise in U.S. bond yields following better-than-expected retail sales.
The pound
GBPUSD,
was slightly stronger after U.K. CPI, both at a headline and core level, came in a tenth higher than estimates.
This post was originally published on Market Watch
