Adidas (DB: ADS) 1Q19 Results: Double-Digit Growth in Asia Pacific and 16% in China Drive Operating Margin Expansion

Executive Summary

• Adidas reported 4% currency-neutral 1Q19 revenue growth driven by 5.3% growth in the Adidas brand. As reported, revenues rose 6.1% to €5.88 billion.
• Asia Pacific sales grew 12% on a currency-neutral basis, driven by the strong 16% pace set in greater China. Emerging markets and Russia/CIS also achieved double-digit currency neutral growth, 10% and 22%, respectively.
• Despite the expectation of continued supply chain constraints through Q4, management reiterated FY19