78
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BEIERSDORF
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By
Reuters
Published
Mar 3, 2016
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Adidas hopeful for boost from 2016 sports events

By
Reuters
Published
Mar 3, 2016

German sportswear company Adidas expects sales and net profit to keep rising fast in 2016, helped by aggressive marketing and big events like the European soccer championships and the Rio Olympics.

Adidas, which had already given an upbeat outlook when it published preliminary 2015 results last month, said it expected currency neutral sales and net income to both increase between 10 and 12 percent this year.

Adidas


Bigger rival Nike is growing even faster, helped by strong demand in North America and China. Nike orders for delivery from December through April rose 20 percent, excluding currency effects.

Adidas has come under pressure from investors after it has lost ground to Nike in recent years. On Wednesday, it proposed board seats for two new influential shareholders.

The firm, where Henkel's Kasper Rorsted will take over as chief executive in October, said optimism for 2016 is supported by rising consumer spending, its innovative products, increased marketing and upcoming sporting events.

"Our order books are full across all major performance and lifestyle categories. And our brands are set to shine at this year's major sporting events," outgoing Chief Executive Herbert Hainer said in a statement.

Adidas reported a fourth-quarter net loss of 44 million euros (£33.94 million) on sales up 15 percent to 4.167 billion euros, compared to average analyst forecasts of a loss of 39 million on sales of 4.151 billion.

Sales of the core Adidas brand were particularly strong in western Europe and North America, rising a currency-neutral 31 percent and 12 percent respectively, far outpacing the 5 percent growth recorded by long-struggling fitness brand Reebok.

Some investors are hoping Rorsted will consider a disposal of Reebok, which Adidas acquired in 2005 as part of its bid to stem Nike's dominance of the North American market.


 

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