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Adidas‘ monumental ascension continues through the early stages of 2017, as reports today indicate huge sales growth in the first quarter.
Adidas, in its largest markets of North America and China, saw sales rise 31% and 30% respectively for the first quarter of 2017 that ended February 28th. Additionally, quarterly net profits rose 29% to $694 million ?US with total sales up 18.9% to $6.04 Billion US. As a result of this triumph widely above forecasted expectations, adidas?stock shares today reached a record high of 183.80?.
Adidas’ stock $ADDY continues to be a very strong investment as it is trading up 22.4% since the start of 2017 and up 66.5% over the past 365 days. ?The stock has more than doubled since the start of 2016.
In 2016, adidas had their very-first year with profits at the $1 billion mark. They’ll almost certainly surpass that this year with a simple philosophy that continues to pay dividends both literally and figuratively. “We need to be humble about where we are in the U.S.,” stated Kasper Rorsted, adidas Chief Executive Officer, on a call with Bloomberg reporters. “Our target is to build sustainable brand loyalty. We are coming from a very different basis than our larger competitor.”
The years of 2015 and 2016 saw tremendous growth with strong sales in multiple categories for adidas. While the Stan Smith and Superstar proved to be big winners for the lifestyle business for adidas Originals in OG and revamped fashion, modern designs like the Tubular, NMD, and Yeezy brought new flavor to the Originals line and interest that the category has never seen before. The performance side of the business also saw an explosion with the adidas Ultra Boost and other Boost models.
It is still early in 2017 with only Quarter 1 in the books, but one can expect to see the three stripes continue to build on the wave of momentum it has built over the past couple of years.