adidas today reported an 8.2% uptick in Q1 net profit "on the improved performance of the German sporting-goods group's namesake and Reebok brands." Net profit for the period ending in March rose to $246M from $226M in the year-ago period, "slightly below analysts' expectations." Q1 sales rose 9% to $4.54B, "adjusted for currency effects." Sales in North America, "a sore spot for Adidas for many years, rose 7% on a currency-neutral basis" (WSJ.com, 5/5).
Meanwhile, Disney this morning reported quarterly earnings, with CNBC’s Julia Boorstin noting the company beat the estimates with “broadcasting showing … big growth in operating income.” But CNBC’s Andrew Ross Sorkin noted “operating income at cable networks, including ESPN, decreased” by 9% to $1.8B for the quarter “due to a decrease at ESPN.” Sorkin: “We always say content is king, but here is what’s happening. The decrease at ESPN was driven by higher programming and production costs. It costs more and more to get the rights for these productions and you have to make up on the other end with the subscriber” (“Squawk Box,” CNBC, 5/5).
