Germany's DAX index experienced a decline of 0.25% on Tuesday, erasing early gains from adidas' ($ADS) impressive results for the third quarter. The German sportswear giant reported an attributable net income of 443 million euros, translating to 2.48 euros per share, for the three-month period ending September 30.
This figure exceeded Visible Alpha-compiled consensus estimates, which anticipated a net income of 374.7 million euros or 2.14 euros per share. As a result, adidas saw a rise of 3.13% at closing, making it the top gainer on the index. RBC Capital Markets highlighted that the additional details in the release indicate robust revenue growth for 3Q24 across various regions, product categories, and distribution channels, excluding Yeezy products.
The earnings per share (EPS) significantly surpassed consensus expectations mainly due to reduced finance expenses, with a smaller impact from tax reductions. "Overall, we are encouraged by the financial progress at adidas and anticipate continued strong top-line performance into 4Q24E and into FY25E," they noted. In contrast, Lufthansa ($LHA) saw a notable decrease of 5.01% after reaffirming its adjusted EBIT guidance, projecting between 1.4 billion euros to 1.8 billion euros for 2024.
The airline continues to forecast robust demand for air travel for the remaining year, particularly within its premium service offerings. On the economic front, findings from the market research firm Growth from Knowledge revealed that consumer confidence in Germany is poised to reach its highest level since April 2022.
This indicator is anticipated to hit -18.3 points in November 2024, marking an improvement from the revised -21 points of the preceding month. However, consumer climate indicators remain low despite the positive trend. NIM consumer expert Rolf Bürkl commented, "The uncertainty fueled by ongoing crises, wars, and rising prices persists, encumbering factors that typically enhance consumption, such as real income growth, from fully materializing.".