adidas Sees Q2 Net Profit Increase On Strength Of World Cup

adidas’ Herbert Hainer Happy With Q2 Results

adidas reported a higher-than-expected 24% rise in Q2 net profit “on the back of a surge in sales spurred by the [FIFA] World Cup,” according to Ulf Laessing of REUTERS. Net profit rose to US$105.3M, despite “higher marketing expenses for the World Cup.” Analysts expected a net profit around US$95M, but the forecasts “had been in a wide range, reflecting uncertainty over the costs of World Cup marketing and the effects of a revamp at its Reebok unit.” Q2 sales jumped 60% to US$3.12B, topping projections of US$3.04B. Orders for the adidas brand were up 6% compared to Q2 ’05, but Reebok saw orders fall 16%. adidas blamed the decline on a “weak footwear business and a transfer of the license sales rights for the ... NBA to Adidas” (REUTERS, 8/9). adidas still expects sales to increase almost 10% annually through ’09 “as it revives the Reebok brand in the U.S.” (BLOOMBERG NEWS, 8/9). Shares of adidas closed today at US$47.03 on the Frankfurt Stock Exchange, up 2.7% from yesterday’s close of US$45.81 (THE DAILY).