Adidas, Chelsea To Terminate Partnership; Adidas Upgrades Guidance

(RTTNews) - adidas AG (ADDYY.PK, ADDDF.PK) announced the company and Chelsea Football Club have mutually agreed to terminate their partnership agreement. The agreement will now end on June 30, 2017 and not, on June 30, 2023. adidas has been sponsor and sportswear supplier for Chelsea Football Club since 2006.

As compensation for the early termination of the contract, the adidas Group will receive a payment in 2017 that will already positively impact the Group's profit in the second quarter of 2016. The Group expects the impact on its net income is expected to be in the mid-double-digit million euro range.

adidas AG now forecasts net income from continuing operations to increase by around 25% in 2016 to a level of around 900 million euros, compared to prior guidance of an increase between 15% and 18%. The Group's operating margin is now projected to increase to a level of around 7.0% in 2016 compared to prior outlook range of an increase to between 6.6% and 7.0%.