Adidas Impacted by Currency Headwinds

4 days ago

Steven Carroll & Co.

"Shares fell as much as about 5 and a half percent this morning and they\'re down about 20 percent year to date. Adidas had its third quarter results where revenue came in slightly shy of estimates, weighed down by foreign exchange movements that proved to be a large headwind. Even though the market reacted negatively, Adidas raised its operating profit forecast, citing brand momentum, which was already expected by analysts."

Adidas is experiencing selling pressure largely driven by significant currency headwinds affecting its quarterly revenue, despite a positive revision in operating profit guidance based on brand momentum. The earnings news is already largely priced in, leaving little room for a market turnaround in the short term.

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