PARIS — Boosted by the World Cup soccer championship, German activewear firm Adidas on Wednesday reported a 13 percent rise in second-quarter profits, to 173 million euros, or $217.4 million.
Sales spiked 60 percent, to 2.43 billion euros, or $3.05 billion, driven by the Reebok acquisition completed in January. Organic sales for Adidas grew 20 percent, to 1.81 billion euros, or $2.28 billion, in the second quarter ending June 30. (Currency conversions were made at average exchange rates for the period.)
For the first six months, Adidas increased profits by 18 percent, to 420 million euros, or $527.7 million, on a sales increase of 53 percent, to 4.89 billion euros, or $6.14 billion. Excluding Reebok, Adidas’ sales in the half rose 19 percent, to 3.31 billion euros, or $4.16 billion.
During the same period, Reebok’s sales fell 9 percent, to 1.05 billion euros, or $1.32 billion, because of order backlogs. Adidas said in a statement this was “expected.” At the TaylorMade-Adidas Golf division, revenues rose 28 percent, to 484 million euros, or $608.1 million.
“The Adidas group had an outstanding first half crowned by our strong showing at the World Cup,” Herbert Hainer, Adidas AG chairman and chief executive officer, said in the statement. “Adidas and TaylorMade-Adidas Golf’s top-line performance was impressive, and Reebok delivered sequential improvement in line with our expectations.”
For the full year, Adidas forecast a sales increase of about 40 percent, including Reebok’s revenues, and between 10 and 12 percent growth, excluding Reebok’s business. The company said net income was “expected to grow at double-digit rates.”
Hainer added in the statement, “We have a pipeline full of operational initiatives for the remainder of the year … We are confident that we will achieve our ambitious full-year targets.”
Adidas’ stock closed up 2.77 percent at 36.67 euros, or $47.06, on the Frankfort Stock Exchange on Wednesday.
This story first appeared in the August 10, 2006 issue of WWD. Subscribe Today.