adidas told analysts that it "expected" 5-10% sales
growth in '99, a "far cry from the robust" 48% growth of
'98, according to Jeff Manning of the Portland OREGONIAN.
The company blamed a "familiar list of culprits," including
"international economic turmoil, sluggish demand at retail
in the [U.S.] and a 'slowdown of market momentum,'" for the
projected results. Manning wrote that although Wall Street
"expected" a fourth quarter loss by the company, the $29M
that adidas is projected to lose for the quarter "is at the
high end of the analysts' estimates." The loss is "due
primarily to costs associated" with adidas' acquisition of
Salomon in early '98 (Portland OREGONIAN, 2/6).
NEW CAMPAIGN: AD AGE reports that adidas "unveils its
first global brand campaign" this week, which is "designed
to demonstrate" the company's "support for athletes at all
levels." Holland-based agency 180 will handle. 180 was
formed by Chris Mendola and Alex Melvin, who worked on
Nike's account at Wieden & Kennedy/Amsterdam (AD AGE, 2/9).
BALANCING ACT: Jason Gay of the BOSTON PHOENIX profiles
MA-based New Balance and writes that the company's
"increased reliance on overseas production has not gone
unnoticed," as it has come under the scrutiny of the Union
of Needletrades, Industrial, and Textile Employees (UNITE).
Gay calls the "brewing" New Balance controversy "deeply
ironic. New Balance's business increased, at least in part,
because people thought it wasn't like its competitors -- but
once sales rose, it found itself confronting the same kind
of criticism its competitors faced" (BOSTON PHOENIX, 2/4).
REBALK? BRANDWEEK's Terry Lefton examines Reebok's
effort to return from its "fall from grace" by "streamlining
... in product, in image & in 'official' ties." While
Reebok suffered "a very muddled brand in a hypercompetitive
marketplace," it will now launch a new brand campaign in
April from N.Y.-based Berlin, Cameron & Partners, with the
tag, "Are You Feeling It?" Reebok CEO Carl Yankowski is
"even considering bringing back a version of The Pepsi
Challenge for sneakers" (BRANDWEEK, 2/8 issue).
SWISS HIT: Shares of K-Swiss rose 23%, or $7.875, to
$42.50 yesterday in trading almost 14 times higher than the
daily average after it announced that "earning's topped
expectations," its stock would split and dividends would
increase. Net income rose to $3.72M, or $.65 per share,
from $1.3M, or $.22, a year earlier (N.Y. TIMES, 2/10).
