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Adidas AG is currently trading at 272.50-lower by 2.89% as compared to the previous closing.
On Wednesday, the German company reported its third-quarter earnings report.
Adidas AG reported a net profit of 646 million euros for the third quarter, lower than the previous year’s profit. Net profit was, however, higher than the market expectations of 635 million euros.
The decline in the profit was partially due to the implementation of the new accounting standard.
According to FactSet. the company’s sales for the third quarter rose to 6.41 billion from 5.87 billion in the previous year same quarter. sales rose by 6% for the third quarter at constant currencies.
Sales in North America improved remarkably, growing at a pace of 10% in the third quarter from 5.8% in the previous quarter outpacing its biggest rival Nike Inc. which reported 4% organic sales growth.
The company is going to launch its new soccer merchandise ahead of the 2020 European Championships after a weaker performance from Yeezy shoes designed by Kanye West.
E-commerce’s growth for the third quarter has declined to 14% from 37% in the previous quarter.
On the technical front, the RSI is in oversold zone and the market can take a reversal from the current level. the market is trading near the lower band of the Bollinger bands. On the daily chart, MACD indicates a possible formation of a bullish divergence pattern which suggests the market can take a reversal from its current levels.
Overall Bias is Positive and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION- BUY@ 272.50, STOP-LOSS@ 271.30, TARGET@ 275.30