Adidas brand in “tip-top shape”
Athletic apparel and equipment maker Adidas AG has reported a 22% rise in third-quarter profit despite a decline in North America sales.
Earnings for the quarter were €298 million (438.7 million) for the July to September period compared with €244 million for the same quarter last year.
Sales slipped 0.3% to €2.941 billion from €2.949 billion as gains by Adidas-brand products were offset by a 6.5% decline in sales of Reebok goods and a 2.2% drop in TaylorMade-adidas Golf products.
The company posted an 8.9% sales decline in North America, with revenue totalling €819 million compared with €900 million last year. This was offset by a 30.4% rise in Latin American sales to €174 million compared with €133 million.
In Asia, where soccer products are growing in popularity, sales were up 9.2% to €579 million from €530 million in 2006. The company reported a modest 0.3 % rise in Europe with sales totalling €1.339 billion compared with from €1.335 billion a year earlier.
For the January to September period, net profit was up 13%. Adidas earned €530 million compared with €469 million a year earlier. Sales were €7.88 billion compared with €7.84 billion in the year-ago period.
Net profit for 2007 is expected to rise 15%.
Chief executive, Herbert Hainer, said that the Adidas brand was “in top shape”, while the company is “continuing to realise material net benefits from the Reebok integration process”.
The company also revealed that Henri Filho has resigned as chairman of the board for personal reasons. He has been replaced by Hans Friderichs, the board's deputy chairman.
