By Linda Pasquini
(Reuters) -Adidas saw strong underlying growth in Greater China in the third quarter, while sales in North America excluding the Yeezy collection were up on the year on increasing brand momentum, after turning positive in the second quarter.
Currency-neutral quarterly sales rose 9% to 946 million euros ($1.02 billion) in Greater China, up from 870 million euros a year earlier, the company said on Tuesday – its strongest quarterly sales in China since the start of 2022.
Adidas (OTC:ADDYY)’ performance in China contrasts with other companies that are struggling with weak consumer demand and a likely longer wait for government stimulus measures to boost confidence.
In North America, its second-biggest market behind Europe, the Middle East and Africa, currency-neutral sales were down 7% at 1.36 billion euros in the July-to-September period, but increased from the previous year when excluding its Yeezy line, the company said.
The results are the latest evidence of a revival in the company’s fortunes almost two years after CEO Bjorn Gulden joined the German brand.
“The strong underlying growth in Greater China and the earlier-than-expected turn to positive numbers for the adidas brand in North America during the last two quarters strengthens our confidence for the mid-term future,” Gulden said in a statement.
A trend for Adidas’ “terrace” shoes, retro models inspired by soccer fans’ footwear in the 1970s and 80s, have driven sales at the German sportswear company, helping it gain market share over rivals such as Nike (NYSE:NKE) and recover from a bruising break-up with rapper Kanye West, who goes by Ye.
Gulden has sought to clear Yeezy stock left unsold after it parted ways with the rapper, its former design partner.
Shares in the company were seen up 1% in Lang & Schwarz premarket trade, seen topping the German blue-chip index.
The German sportswear maker released preliminary third-quarter figures and hiked its annual guidance again earlier in October.
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