PARIS — Bolstered by product launches before the World Cup and the first-time consolidation of Reebok, Adidas reported a 37 percent jump in first-quarter profits.
With the world's largest sporting event one month away, the activewear giant beat forecasts Tuesday in reporting profits of 144 million euros, or $173.2 million, up from 105 million euros, or $137.8 million, in the first quarter of last year on consolidated, currency neutral sales of 2.46 billion euros, or $2.96 billion. Sales for Adidas Group excluding Reebok increased by 13 percent.
Currency conversions were made at average exchange rates for the respective periods.
Despite the positive results, the group's enthusiasm was countered by the performance of recently acquired Reebok, which saw sales decline by 14 percent.
Adidas admitted the acquisition could cause short-term turbulence before the $3.8 billion deal bears fruit.
"We expect to see positive sales numbers coming through at the end of 2006, which will show in 2007," said Herbert Hainer, chief executive officer, during a conference call Tuesday. "There is still work to do in distribution."
For the full year, the Herzogenaurach, Germany-based firm projects a "mid single-digit" decline for Reebok. Hainer said he remained positive regarding the sales development of its new addition: "Reebok is in a profitable position and is forecasted to have an accretive impact for the group in 2006."
As the official sponsor of the World Cup, as well as supplier for leading teams such as Argentina and England, the group reported a 30 percent increase of its total soccer business to reach 1.2 billion euros or $1.44 billion. Hainer said World Cup product launches such as the "Tunit" soccer shoe — of which Adidas aims to sell more than 750,000 pairs — boosted the figures.
Soccer balls were also scoring points with expected sales of over 15 million balls, up from the original projection of 10 million balls.
Hainer boasted Adidas' leading market share placed the group of ahead of its rival Nike in the soccer category.
For the full year, the group projects a "strong double-digit" rise in currency neutral sales in 2006 and "high-single-digit" sales increase excluding Reebok.Adidas said its profits would grow by "a double-digit percentage rate" in 2006.
"We will have more momentum out of the World Cup to help build a platform to develop our business in the future," Hainer said. He added that 2007 would be another successful year of product launches as Adidas gears up for the 2008 Olympics in Beijing.
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye
Did you know: @carlychaikin of "Mr. Robot" has been painting for about a decade? The actress, who plays Darlene on the show, is a self-taught artist who lists Salvador Dalí and Chuck Close as some of her idols. Chaikin told WWD that painting is a form of meditation for her — A much-needed one given the intensity of "Mr. Robot." See a piece Chaikin is working on at WWD.com (📷: @jilliansollazzo) #wwdeye