adidas Posts $67.7M Q4 Net Income, Up 157% From Year-Ago Period

Hainer Forecasts Lower Sales And Earnings This Year As Consumers Pare Spending

adidas AG posted a net income of $67.7M, or $0.27 per share, for FY '08 Q4, up 157.1% from $26.3M in the year-ago period, according to Holger Elfes of BLOOMBERG NEWS. The company yesterday "gained as much as" 7.1% in trading as the figures beat estimates. Profit growth was "helped by a drop in marketing spending compared with a period of 2007 when the company was gearing up for soccer's European championship and the Beijing Olympics." Bank of America analyst Rodolphe Ozun said adidas' earnings came about 2% "above market expectations, mainly due to stronger than expected sales." Full-year sales in Asia climbed 20%, excluding exchange rates, and revenue increased 11% in Europe, while falling 8% in North America. But adidas Chair & CEO Herbert Hainer today "forecast lower sales and earnings this year as consumer pare spending." adidas said that '09 revenue "will decline at a 'low-to-mid single-digit' pace, excluding currency swings." Elfes notes orders for adidas-brand gear were down 6% "at constant exchange rates at the end" of Q4, while orders for Reebok products were down 17% (BLOOMBERG NEWS, 3/4). The WALL STREET JOURNAL's Erin Fines notes adidas' shares "have lost around 45% of their value over the past 12 months, while Nike's stock is down 33% over the same period" (WSJ.com, 3/4).