Adidas buoyed despite fall in income

28 Apr 2008

By: Sport Industry Group

Adidas’ net income dropped to €128m in its latest set of financial figures but the sport goods giant is ahead of market predictions as it looks to build up its recently acquired Reebok brand.

With the company’s net income fell 11% from a year earlier - where its figures were inflated due to the impending football World Cup - sales increased by 3% to €2.54bn with Reebok making its first market gain since it was acquired by Adidas in 2005.

As a result of news, shares in Adidas jumped as much as 6.5%, the most since August 2005 with the company's stock adding almost 20% this year after sliding 8 percent last year, when the Reebok acquisition weighed on earnings.

Adidas repeated its forecasts for sales to grow at mid single-digit rates this year and profit to approach 15% growth. Sales at Reebok are forecast to improve at low single-digit rates.