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Adidas 2Q Net Surges

As Adidas-Salomon AG was announcing its purchase of Reebok on Wednesday, it also reported strong second-quarter results.

NEW YORK — As Adidas-Salomon AG was announcing its purchase of Reebok on Wednesday, it also reported strong second-quarter results.

Net income from continuing operations soared 33 percent over the prior year to 94 million euros, or $118.6 million, on a sales gain of 8 percent to 1.52 billion euros, or $1.91 billion. Net income (attributable to shareholders) from continuing and discontinued operations, showed an increase of 52 percent to 66 million euros, or $83.3 million. Dollar figures are at the average exchange rate.

The company said second-quarter operating profits jumped 25 percent to 153 million euros, or $193 million. On a currency-neutral basis, the company said sales increased 10 percent.

In its quarterly statement, Adidas-Salomon said the robust sales were driven by double-digit improvements from all of its brands and all of its regions, except Europe, which experienced a 1 percent sales decline, year-over-year.

For the first half of the year, currency-neutral sales gained 11 percent year-over-year, while in terms of euros, the sales rose 10 percent to 3.19 billion euros, or $4.06 billion.

“The first half of 2005 was an important six months for Adidas-Salomon,” Herbert Hainer, chief executive officer, said in a statement. “We have strengthened the core of our business, made it more efficient and more focused on areas where we have proven skills. And we were able to deliver an outstanding set of financial results — exceeding both market and our own expectations.”

By region, sales in the first half showed strong gains in Asia and Latin America, which grew 28 and 38 percent year-over-year, while North America rose 13 percent on a euro basis. Sales in Europe were unchanged.

This story first appeared in the August 4, 2005 issue of WWD.  Subscribe Today.