SBD/March 3, 2011/Finance

Adidas Reports Higher Fourth-Quarter Revenue, But Smaller Profit

adidas AG yesterday announced that its Q4 net profit "shrank amid higher operating expenses even though improving sales in a healthier global economy powered a strong rise in revenue," according to Allan Brettman of the Portland OREGONIAN. adidas earned $9.7M in Q4, down from $26M a year earlier, but "still better than analysts' forecast" of $5.4M. Revenue was up 19.2%, climbing to $4B from $3.4B and beating analysts' prediction of $3.8B. adidas also reported 15% revenue growth at its Reebok brand. adidas America President Patrick Nilsson "noted the success of the 'Fast Don't Lie' basketball campaign" that features Bulls G Derrick Rose and Magic C Dwight Howard as "centerpiece endorsers." Nilsson said North America sales of basketball products in the quarter "generated our highest sell-throughs in the category in many years" (Portland OREGONIAN, 3/3). BLOOMBERG NEWS' Holger Elfes reported adidas "has identified China along with Russia and North America as 'growth markets,' where it plans to generate about half of its forecast 50 percent sales increase by 2015." Q4 sales climbed 25% in China (BLOOMBERG NEWS, 3/2). In Portland, Erik Siemers reported North American sales grew a "currency neutral" 12% to $3.9B, lagging only behind Latin America with 14% and emerging European markets with 16% in overall sales growth (BIZJOURNALS.com, 3/2).

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