Thursday, 4th May: Adidas shares reached a record high this morning at 188.95 euro. Quarterly net profit was up 30% to £385.7m and sales were up 19%, both surpassing forecasts and running straight past US based rival Nike. Although some analysts doubt Adidas will be able to maintain this impressive performance, for now, they deserve a pat on the back, as they’ve been losing ground to Nike for years now. Kanye might pin the success down to his association with the brand, which to some extent may be true, but it has also been down to the return of retro styles which Adidas has dominated in with their increasingly popular superstar trainers, and a decrease in demand of Basketball styles, which is where Nike took the kick in the teeth.
Adidas aren’t the only ones enjoying a positive Q1 though, as the FTSE started the day 19 points higher at 7253, and leading the way was Royal Dutch Shell, opening 2.96% higher after reporting back an impressive Q1 performance. Profit more than quadrupled when compared with last years’ Q1 figures, and the oil and gas giant finally begins to enjoy the recovery in oil prices. Shell was the most recent out of the group of oil and gas companies who have reported back a positive start to the year, as the likes of Exxon Mobil, Chevron, Total SA and BP have all been enjoying similar increases and have reported back very healthy and happy Q1 results.
On the opposite end of the FTSE was Next, who continues to reflect their struggle dealing with the forever challenging consumer environment. After lowering their full year profit guidance from £780m to £740-£680m, they landed at the foot of the FTSE at the start of the day, down almost 4% at £42.34 after closing at £44.10 on Wednesday, and remained at the very bottom for the remainder of the day. The British clothing retailer saw a slight rise in online sales, but it wasn’t enough to offset the aftermath of a decline of 8.1% in full priced goods sold in stores recorded in Q1. The 8.1% drop was even more alarming when compared to the previous year when the decline was 2.9%. Next has been battling since 2015, and ytd the share price has dropped around 17%.
The FTSE finished the day closing around 0.19% up at 7248.