PARIS — Despite a 30 percent drop in third-quarter profits, German activewear giant Adidas AG said its confidence is growing, citing efficiency savings and the advent of next year’s FIFA World Cup, which could bring in revenues in excess of $1.91 billion.
“Consumer and retailer sentiment still hovers between fear and optimism. However, we are well prepared to face any challenges thrown our way,” group chief executive officer Herbert Hainer said Wednesday on a conference call with analysts. He said a “firm grip on inventories, a better financial position and a leaner organization” underlined his brightening outlook.
The second-largest activewear company after Nike said it expects 2009 earnings per share to decline to between 1.15 euros and 1.30 euros, or $1.69 to $1.91 at current exchange, and revenues to drop by midsingle-digit rates.
Net profits for the three months through Sept. 30 fell to 213 million euros, or $304.4 million, and were broadly in line with analysts’ estimates. Hainer called the results “a significant improvement in profits” compared with the second quarter, when the net dove 93 percent.
Group revenues decreased 6 percent to 2.89 billion euros, or $4.13 billion. Dollar figures were converted at average exchange for the periods to which they refer.
On a currency neutral basis, by brand, revenues fell 6 percent at Adidas and 12 percent at Reebok and TaylorMade-Adidas Golf.
Hainer noted the new product range and marketing campaign at Reebok, which Adidas acquired in 2006, had received encouraging feedback from retailers. He added the group would continue to clean up Reebok’s inventory and introduce products at a higher price point for better margins, such as the Easy Tone shoe, which sells for around $100.
Nine-month net profits declined 62 percent to 226 million euros, or $308.9 million, on revenues that decreased 4 percent to 7.92 billion euros, or $10.83 billion.
In the nine months, revenues fell in all regions, except Latin America, where sales gained 10 percent, and Asia, where they edged up 1 percent. Sales in Europe decreased 9 percent, following the end of the UEFA Euro 2008 soccer tournament, which generated strong revenues last year. Sales decreased 3 percent in North America.
Hainer said the group’s drive for “operational excellence has meant we have strongly improved our financial position, generating almost 740 million euros in net cash from operations over the last six months.”
He also underlined that 2010 would be “a record year for football,” and added that the soccer division will achieve more than 1.3 billion euros in revenue, or $1.91 billion.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)