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November 3, 2011 9:32 am
Adidas once again pushed up its sales and earnings estimates for the year and forecast further increases in 2012 as Europe’s largest sports goods company announced its best third quarter.
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A good performance in emerging markets and the expansion of its retail business would help to push sales up 12 per cent this year, adjusting for currency fluctuations, the group said, compared with the 10 per cent rise predicted three months ago. Earnings per share should rise by 16 per cent to €3.15, compared with last year’s €2.71.
Third-quarter sales of €3.7bn and net income of €303m were better than most analysts had estimated.
Next year – when big sports events such as the Olympic Games in London and the European football championships should spur consumer demand – earnings should rise a further 10 to 15 per cent, Adidas said.
Herbert Hainer, chief executive, said in a statement: “We will finish 2011 clearly exceeding our initial expectations after already surpassing our 2008 record earnings mark after the first nine months ... 2011 will be another record year for the Adidas group.”
Adidas has made Russia and China two of the most important areas for its marketing drive, while it is also trying to shift more sales into its own stores, where margins are higher. Retail sales should increase at a “high-teens” rate this year, Adidas said.
“Although we continue to face pressures from higher input costs as well as volatility on currency markets, we are well prepared for continued top- and bottom-line growth,” Mr Hainer said. “The major sporting events next year provide excellent opportunities for us to extend our current momentum.”
The German group also announced a small deal to increase its outdoor sports business, saying it was buying Five Ten, a US brand used by climbers and mountain bikers, for $25m.
California-based Five Ten is expected to have about €16m in sales this year.
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