Adidas AG saw its second-quarter earnings rise 25 percent on a slight sales decrease, thanks to cost synergies from integrating Reebok into the German active giant.
For the quarter ended June 30, earnings increased to 104 million euros, or $140 million, from 83 million euros, or $104 million, in the second quarter last year. Earnings per diluted share were 0.49 euros, or 66 cents, from 0.39 euros, or 49 cents.
Sales for the quarter slid 1 percent to 2.4 billion euros, or $3.24 billion, from 2.43 billion euros, or $3.05 billion, in the same period last year, during which Adidas was benefiting from sales related to the 2006 FIFA World Cup. Currency conversions were made at average exchange rates for the respective periods.
"Our second-quarter performance again highlighted the broad strength of the Adidas Group, as well as our ability to drive integration and continue to focus management's attention on Reebok, while still maximizing our bottom-line results," said Herbert Hainer, Adidas AG chairman and chief executive officer, on an earnings call Wednesday.
Gains in Adidas brand merchandise were offset by losses in Reebok, which Adidas acquired last year. Sales of Adidas products were up 7 percent to 1.64 billion euros, or $2.21 billion, compared with 1.53 billion euros, or $1.92 billion, in the second quarter last year, while sales of Reebok fell 14 percent to 514 million euros, or $693 million, from 595 million euros, or $748 million. TaylorMade-Adidas Golf sales dropped 9 percent to 239 million euros, or $322 million, from 264 million euros, or $356 million, driven down by the divestiture of the Greg Norman Collection wholesale business.
By region, sales in North America fell 12 percent to 730 million euros, or $984 million, from 834 million euros, or $1.05 billion, for the quarter. The decline was partially offset by a 32 percent gain in Latin America to 152 million euros, or $205 million, from 115 million euros, or $144 million.
Adidas' largest market, Europe, saw a moderate increase of 3 percent to 967 million euros, or $1.3 billion, from 936 million euros, or $1.18 billion. Asia saw steady growth of 9 percent to 535 million euros, or $721 million, from 490 million euros, or $616 million.
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