Online Sales Focus Boosts Adidas Profits
Adidas (ADDYY) reported that operating margin rose 1.4 percentage points to 14.9% percent in Q1. Under Chief Executive Kasper Rorsted ‘s leadership, the company is witnessing a significant rise in operating margin. Rorsted’s major focus was on expansion in North America and Asia via online sales, as compared to wholesale business since the margins are higher in online sales.
The German sportswear maker recently announced partnering with celebrities Kanye West and Beyonce which is expected to have a significant amount of impact on its sales and has reported an increasing amount of downloads of the associated app.
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