As adidas' golf business improves and consumer confidence recovers, the company "expects robust sales growth" in '15, and net profit "should rise faster still despite exchange rate hits and higher marketing spending," according to Emma Thomasson of REUTERS. Thanks to "strong momentum at its main Adidas and Reebok brands, a recovery at its revamped golf unit and an expansion of retail selling space," the company "hopes to more than compensate for the non-recurrence of sales from last year's soccer World Cup." Adidas expects '15 sales "to rise at a mid single-digit percentage rate on a currency neutral basis," after a 6% increase in '14, while net profit from continuing operations "should climb" 7-10%. The company's '14 results "were hit by problems at its TaylorMade golf business as the popularity of the sport waned in the U.S. market." It was also "hurt by the weakness" of the ruble, as Russia is one of its biggest markets. However, sales in North America "showed signs of improvement" in Q4 after adidas "increased its marketing efforts, including signing top basketball players," rising 3% after falling 10% in the first nine months (REUTERS, 3/4). BLOOMBERG's Aaron Ricadela reported adidas' 7-10% net-profit increase projection excludes "some items -- such as its Rockport walking-shoe division, which is being sold." Adjusted profit last year "fell" 22%. On March 26, adidas Chair & CEO Herbert Hainer "will give a long-range strategy plan." He will "forecast sales" through '20 and unveil how adidas "will expand in the U.S. and make its products more appealing to the global teens that set trends in the sneaker and sportswear industry" (BLOOMBERG, 3/5).
