PARIS?– Despite continued weak sales of its Reebok brand, German activewear giant Adidas AG saw net income jump 32 percent in the first quarter.
Beating analysts’ forecasts, the company’s net income came in at 169 million euros, or $253.1 million at average exchange, while gross margin increased 2.3 percentage points to 49.1 percent, driven by improvement in all brand segments, the company said. Its operating margin, meanwhile, increased 1.7 percentage points, to 10.8 percent.
For the three months ended March 31, the group’s overall sales reached 2.62 billion euros, or $3.93 billion, up 3 percent in euro terms and 10 percent on a currency-neutral basis.
However, sales at Reebok, which Adidas AG acquired in 2006, again failed to achieve growth. While Adidas revenues increased 8 percent in euro terms, or 14 percent on a currency-neutral basis, to 1.97 billion, or $2.95 billion, in the quarter, sales of Reebok goods fell 13 percent, or 6 percent on a currency-neutral basis, to 454 million euros, or $678.5 million. Meanwhile TaylorMade-adidas Golf grew sales 6 percent, or 17 percent on a currency-neutral basis, to 191 million euros, or $286.1 million.
For complete coverage, see Wednesday’s WWD.