Despite the boost (no pun intended) provided by high profile collaborations with Kanye West and Pharrell Williams, 2015 has been a tough year for adidas. However, its sales performance could finally be turning around as the brand has just announced a 10 percent net profit growth for the third quarter.
adidas' total third quarter sales are up 13 percent from last year and 5 percent from last quarter, resulting in a total of $5.17 billion in group revenue, according toWall Street Journal. This breaks down to a net profit growth of 10 percent at $339 million, which greatly eclipses last year's net of $306 million.
"Our relentless focus on the consumer is clearly paying off. The third quarter shows that, in combination with our excellence in execution, this is the game plan to drive brand desirability and generate strong top- and bottom-line growth," said CEO Herbert Hainer.
The third quarter boom also led adidas to raise its 2015 sales guidance, meaning the brand is actually performing far better than it expected. It's even forecasting steady growth in North America, an area which has previously been one of its biggest Achilles' heels.
Taking currency fluctuation into consideration, adidas' North American numbers are up 6.5 percent from this time last year with a total of $843 million in revenue. However, despite the growth, it's still lagging behind Nike and Under Armour in the U.S.
Only time will tell if the brand can keep this momentum going and become a serious contender in the States.
