A week after raising its full-year forecasts, adidas "showed how increased followings in North America and China are helping it sprint clear of the sporting-goods field," according to Corinne Gretler of BLOOMBERG. Second-quarter sales in North America rose 26% at constant exchange rates, the German company said Thursday, "leaving rivals trailing in its wake as the market slows." Revenue gained 28% in Greater China, adidas added, "while also fleshing out forecasts for increased profitability." Demand for retro shoes and a "steady stream of new models" have made adidas a "hot brand" in the U.S. after it "fell out of favor for years." Chinese consumers "are also flocking toward pricier, premium foreign goods." Adidas brand sales rose 21% in the second quarter, accelerating from the first quarter's 18% gain. RBC analyst Piral Dadhania wrote, "Adidas continues to deliver results in excess of already elevated expectations, across all categories in all regions. We expect these trends to continue, supported by a strong product offer, focused management team and competitor weakness." Reebok’s first-quarter growth "was unusually strong" due to early product launches, and the brand is now returning to a "more normalized rate as it continues its turnaround" (BLOOMBERG, 8/3).
