Adidas Q3 Profit Up 22% Due To Lower Purchasing Costs

adidas' Q3 profits rose 22% from Q3 '06, as the company has "negotiated lower prices with suppliers following last year's acquisition of Reebok," according to Thomas Mulier of BLOOMBERG NEWS.  Net income grew from $357.8M (all figures U.S.) and $1.64 a share a year ago to $436M and $2.01 a share, higher than the $426.7M median estimates of nine analysts. Q3 sales were "little changed" at $4.31B, but gross margin widened from 45% to 48.6%. Analyst Peter Farren said, "The gross margin was the main driver for the above-consensus net income growth."  Mulier notes the "decline of the dollar against the euro also boosted the margin." adidas also said that "profit growth will speed up" in '08, and sales should rise at a "high-single-digit" rate.  Reebok's Q3 sales declined, and adidas predicted, excluding currency movements, a "low-single-digit" gain in Reebok's sales this year. adidas Chair & CEO Herbert Hainer said that the Reebok sales should increase in '08 (BLOOMBERG NEWS, 11/8).  At presstime, adidas shares were trading at US$70.00 on the German stock exchange, up 3.99% from yesterday's close of US$67.32.  It is the stock's highest price since July 9 (THE DAILY).