Executive Summary

• Adidas grew 2Q18 revenues by 10% year over year at constant currency, with revenues, EBIT and net profit all coming in ahead of consensus.
• Management noted that the company’s significant gross-margin uplift reflected the “quality” of its revenue growth.
• Management reiterated its guidance for FY18: the company expects to grow sales by approximately 10% at constant currency and to increase its operating margin by between 0.5 and 0.7 percentage points.