Adidas AG (ADDYY) saw North American sales top the $1 billion mark over its last fiscal quarter as it continues to steal market share from rival Nike Inc. (NKE - Get Report) and expand its brand in China.
Adidas said operating earnings for the three months ending in September rose 35% from the same period last year to €795 million as total group sales rose 8.7% to €5.677 billion. Net income rose 35% to €549 million, Adidas said. In North America, Adidas said sales topped the €1 billion mark for the first time, rising 23% on a currency-neutral basis over the same period last year.
"The company's strategic growth areas - North America, Greater China and eCommerce - were again the main drivers of our strong top-line performance during the third quarter," said CEO Kasper Rorsted. "We are even more pleased with the quality of our growth, which is clearly reflected in the exceptional profitability improvement in Q3."
The North American sales boost again markets a sharp contrast to rival Nike, which saw sales over its last fiscal quarter (which ended in August) fall 3% to just under $4 billion. Nike's China's sale grew 9% to $1.108 billion, the company said, but that figure trailed the 28.3% gain for Adidas, which saw total brand sales -- including Adidas and Reebok -- hit €1.102 billion.
Adidas also increased its gross margin by 2.4 percentage points to 50.4%, against besting Nike's 43.7% tally from its last quarter.
Looking ahead, the Herzogenaurach, Germany-based group confirmed its full-year 2017 outlook for both sales -- which it expects to rise between 17% and 19% on a currency-neutral basis -- and net income -- which it says will come in between €1.36 billion and €1.39 billion for the full fiscal year.
Adidas shares closed at €184.71 each in Frankfurt Wednesday, putting it's year-to-date gain at around 23.3% compared to a 9.7% advance for Nike.
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