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DE30 gains to end the week
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Attention focused on labor market data from the US and Canada
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Adidas (ADS.DE) quarterly results
This week's final trading session on European markets brings an improvement in investor sentiment. The German DE30 is currently trading close to 0.6% higher and is approaching the 15950 point zone. Investors' attention in Germany today is primarily focused on Adidas' quarterly results and macro data readings on employment in the US and Canada.
German factory orders data published this morning showed a massive fall of 10.7% m/m (-2.1% m/m was expected). Eurozone retail sales for March also surprised negatively. The reading was -3.8% y/y (forecast: -3.1%; previous: -2.4%).
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The mood in Europe during Friday's trading session is relatively positive. Source: xStation 5
News:
The shares of Adidas (ADS.DE) gained more than 6% during this week's final trading session following the publication of better-than-expected quarterly results and the maintenance of full-year forecasts. The publication of the results above all had a soothing effect on investors, who were on the lookout for signs of stabilization in the company's revenue trend.
At this point, Adidas is on track to meet its organic growth forecasts for the year. However, a number of uncertain factors remain, such as inventory control and brand positioning (mentions of these factors will be closely watched during the earnings conference call).
Moreover, the company is once again using Chinese influencers to promote its brand in China. On the other hand, however, the company is still expecting a huge operating loss in 2023 (€700 million). The company's focus for the moment is on securing a better business foundation in 2024-2025. In order to do so, however, Adidas must reduce €5.7 billion worth of unsold products, of which the Yezzy brand accounts for nearly €1.2 billion.
Adidas (ADS.DE) company result details. Source: Bloomberg
JP Morgan and Deutsche Bank reiterated their 'Buy' ratings; Goldman Sachs maintained its 'Neutral' rating.
Adidas (ADS.DE) share price, D1 interval. Source: xStation 5
Major percentage changes and news from individual companies in the DAX index. Source: Bloomberg
DE30 chart
The DE30 starts the day with a solid rally and returns above the 15950 point level. Source: xStation 5
