Adidas reports higher sales, modest profit rise
Net profit in the April through June period was up 1.4 percent compared to the second quarter last year to 146 million euros ($159 million), the company said, in line with expectations.
Overall sales, driven by the Adidas and Reebok brands, rose 15 percent to 3.91 billion euros.
Adidas, the main European rival of US sportswear giant Nike, welcomed the rise in revenues, as it was compared to a year earlier when the company benefited from its sponsorship of the Brazil football World Cup.
Sales rose in Western Europe, China and the Middle East but fell 14 percent in Russia, where trade sanctions sparked by the Ukraine crisis and the fall in oil prices have pummelled the economy.
Adidas sales at its TaylorMade-Adidas Golf division were down 26 percent on a currency-adjusted basis, a result analysts at DZ Bank said was "much worse than expected".
The Bavarian company is working on a new strategy to catch up with Nike, including by boosting digital products.
On Wednesday it announced the purchase of a smartphone application for joggers, Runtastic, for 220 million euros.
Adidas is also working on a concept to make sneakers, and later apparel, directly in the store, from measurements taken from customers, business newspaper Handelsblatt reported on Thursday.
Source: I-Net Bridge
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