adidas today said that it "expected sales and net profit to rise at a fast pace" in '16, helped by "aggressive marketing and big events" like the UEFA Euro '16 and the Rio Games, according to REUTERS. The upbeat forecast "came as the company reported a fourth-quarter net loss" of about $48M (all figures U.S.). The company said that sales "were up" 15% to $4.553B, and the Q4 result "compared to average analyst predictions of a loss" of $42.62M on sales of $4.536B. adidas said that it expected "both sales and profit to increase" 10-12% this year. Recent sales of the core adidas brand "were particularly strong in Western Europe," which saw a 31% rise, as well as North America with a 12% lift. Those figures "far outpaced" the expected 5% growth recorded by the company's "long struggling fitness brand Reebok" (REUTERS, 3/3). The WALL STREET JOURNAL's Ellen Jervell notes adidas "reported its best results in years, recovering from the weakened sales and profits" in '13 and '14. adidas posted a '15 net profit of $692.8M, up 29% from the year before. Its full-year sales "rose 16%" to $18.58B. However, Jervell notes some analysts "worry the upswing is more a sign of health in the broader sportswear industry than a turnaround" at adidas (WALL STREET JOURNAL, 3/3). Outgoing adidas Chair & CEO Herbert Hainer said, "The adidas brand was never stronger as it is in the moment. Also in the U.S. -- you can see through our collaborations with Kanye West and Pharrell Williams, through our investments in the American sports, be it a guy like James Harden or Von Miller." Hainer: "So 2015 was a very good year, but I do believe 2016 will be even better” ("Squawk Box," CNBC, 3/3).
GOOD WALK SPOILED: BLOOMBERG NEWS' Aaron Ricadela reports Hainer reiterated that the company "will complete a review of its struggling golf business this month." Revenue of TaylorMade-adidas Golf dropped 13% excluding currency shifts in '15, declining to $985.66M (BLOOMBERG NEWS, 3/3).
