Adidas release in Europe as Stan Smith's Superstars go out of fashion

BERLIN (Reuters) – Adidas ( ADSGn.DE ) cut its forecast in 2018 on Wednesday after the third quarter sales fell in Western Europe, where it was hit by switching fashions and Nike & # 39 ; s ( NKE .N ) wins in football.

While the German sportswear company has gained market share in North America, the American rivals have emerged in Europe, helped by a strong view of Nike-sponsored teams at the football game. and the Phantom series.

Adidas shares, which increased by 12 percent last year, fell 2.3 percent of 0954 GMT after it cut its 2018 target for currency neutral sales growth to between 8 and 9 percent from "around 10 percent".

Managing Director Kasper Rorsted has focused on improving Adidas profitability since taking over in 2016 by focusing on growth in North America and Asia and pushing e-commerce, where margins are higher than in stores.

Adidas said it now expects 2018 net income from continuing operations to grow 16-20 percent, compared with previous guidance from 13 to 17 percent.

Following a previous warning that Western European sales were likely to be flat in the second half, Adidas said that the region's currency-adjusted sales fell 1 percent in the third quarter.

Rorsted said that Adidas was proud of shoes like her retro Stan Smith and Superstar who have gone out of fashion and not enough sports gear.

"We are a sports company. We should have done a better job in the sports channel," he told reporters.

Not soon enough

Adidas had also failed to react quickly enough to claim its new styles like Continental shoes , and had over priced some goods, all factors now addressing, adds Rorsted.

Adidas continued to grow rapidly elsewhere, with sales of 16 percent in North America and 15 percent in the Asia Pacific.

E trade sales jumped 76 percent in the quarter and Adidas saw the September launch of Yeezy Boost shoes designed by rapper Kanye West drive traffic to their website, with sales and margins of the new styles beyond expectations.

Overall, Adidas said that sales in Q3 increased by a currency-adjusted 8 percent to $ 5,873 billion ($ 675 billion), shocked by analysts' average forecasts, while net profit from continuing operations jumped 19 percent to 656 million euros consensus.

The German rivals Puma ( PUMG.DE ) increased the year-on-year sales and operating profit last year when it reported strong sales growth in America and Asia and said its first basketball shoes of 20 years had been well received. [19659000]