PARIS — Adidas Group raised its annual earnings and sales forecast for 2005, citing a surge in demand in the U.S. and strong orders for new products in the run-up to next year's soccer World Cup in Germany.
The company expects that net income for Adidas, which includes the TaylorMade-Adidas golf business, will grow at least 20 percent in 2005. For the third quarter, net income (attributable to shareholders) from continuing and discontinued operations, rose 20.3 percent to 215 million euros, or $262 million at average exchange, beating analysts' estimates.
"Adidas is moving with great vigor toward the World Cup," said Herbert Hainer, chief executive officer of Adidas, during a conference call with analysts Thursday. "We are ready to take on the next big challenge, the integration of the Reebok group."
Adidas, the second-largest activewear firm in the world after Nike, is in the process of purchasing Reebok International Ltd. to double its share of the U.S. market and narrow the gap with its biggest competitor. Despite Reebok's slumping sales in the third quarter and decreasing orders from retailers such as Foot Locker, Hainer expressed confidence that the Reebok acquisition would boost earnings.
"Clearly, there are challenges that Reebok will solve, but these were not unknown when we made our offer in August and we remain fully confident in the synergies and financial targets," Hainer said. The deal should be concluded in the first half of 2006, following European antitrust approval.
In the three-month period ended Sept. 30, net income from continuing operations increased 28.1 percent over the prior year to 209 million euros, or $255 million, on a sales gain of 9.4 percent to 1.92 billion euros, or $2.35 billion.
The company said third-quarter operating profits jumped 12.3 percent to 315 million euros, or $384.3 million.
By region, European sales were flat due to the general economic malaise. The region "continues to be the biggest challenge," Hainer said. Still, he expects demand to gain momentum into next year especially as World Cup products enter the market. Team jerseys from France, Germany, Japan and Argentina, for example, are expected to hit stores this month. Apart from World Cup products, Hainer said demand for running shoes and apparel is on the rebound in Europe.North American sales jumped 15.8 percent to 446 million euros, or $544.2 million. "Our key region, North America, is stronger than ever, so we have raised our group sales and earnings expectations for the year," said Hainer. Meanwhile, sales in Asia jumped 21.6 percent while sales in Latin America soared 46.2 percent.
Taking the final spot on the mens’ portion of New York Fashion Week calendar next month will be none other than @tomford. Though he’s shown his men’s wear in New York in the past, this will mark the first time the designer has shown his men’s collection alone during New York Fashion Week: Men’s. His runway show will debut on February 6 at the Park Avenue Armory. #wwdfashion
London-based couture house @ralphandrusso has certainly been in the spotlight, having its dresses worn by @beyonce, Angelina Jolie, Meghan Markle in her engagement photos and more. For couture, Tamara Ralph focused on ornamentation — think: feathers with chain mail, jet embroidery and clusters of pearls and crystals. See the rest of the collection on WWD.com #wwdfashion #couture (📷: @giovanni_giannoni_photo)
Minnie Mouse celebrated her 90th birthday by getting her own star on the Hollywood Walk of Fame. For her celebratory luncheon, @coach’s creative director @stuartvevers dressed her in a custom made prairie dress, complete with Vever’s take on the polka dot – black sequined versions – under a cropped motorcycle jacket. The designer also put his own mark on Minnie’s classic red shoes, infusing the color with sparkles and adding some Coach crystals. “We chose colors that were very Minnie and also represented quintessential Coach elements,” said Vevers. #wwdfashion #nationalpolkadotday (📷: George Chinsee)
@nickjonas is unveiling his first-ever apparel collection through a partnership with John Varvatos. The limited-edition capsule, which makes its debut in spring, also marks the first time the designer has collaborated with anyone on a line. “The process in working with Nick is amazing. It’s inspiring to be around someone who is not only connected with the trade that they do, but also with what’s happening in the environment around him, and how that connects to what we do with style,” said Varvatos. (RG: @johnvarvatos) #wwdfashion
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)