Adidas AG(OTC: ADDYY) was one of only six Eurofirst 300 stocks in positive territory yesterday. This uptick comes after sales beat projections by 10%. The German group expects profits to grow at a double-digit clip the rest of 2016.
The growth was pinned largely to trendy collections from Rita Ora and Kanye West. Rita Ora, the fashionable singer, has a collection of sweatpants that are very popular in Europe and the UK. West’s Yeezy Boosts are the most sought after shoe in the world right now. Chief executive Herbert Hainer said: “We are in great shape... a clear focus on driving brand desirability has already started to pay off.”
Adidas is also working on a subscription service for women called Avenue A. The initial boxes will be curated by “fitness artist” Nicole Winhoffer, which will feature a mix of fitness gear for female athletes and active ladies. For men, Adidas is working on something called Futurecraft Tailored Fibre. The concept is that the material of the shoes will be custom knit and bespoke through computerized cutting.
Adidas is taking advantage of a world that is trying to get healthier. Adidas shares, which have managed to escape the 17 percent fall of the broader German blue-chip index .GDAX so far this year, were up 4.2 percent , the only risers on a weaker DAX following the unscheduled statement.
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