Running, fashion power strong Adidas sales in Q1

Berlin

GERMAN sportswear company Adidas reported better-than-expected first-quarter sales growth on Tuesday, helped by a strong performance from its running and fashion businesses as well as a recovery of its struggling North America arm.

Adidas said sales rose 17 per cent to 4.083 billion euros (S$6.1 billion), or by 9 per cent excluding the impact of currencies, which was ahead of average analyst forecasts for 3.913 billion euros.

Attributable net profit rose 8 per cent to 221 million euros, below forecasts for 232 million euros but including a goodwill impairment of 18 million euros due to a change in reporting. "After getting off the starting block well this year, we are optimistic about our prospects for the full year," chief executive Herbert Hainer said. Mr Hainer had already flagged that first-quarter results would be strong in a weekend newspaper interview.

In North America, where Adidas has been spending heavily on marketing to try to make up ground lost to market leader Nike as well as fast-growing Under Armour, currency-neutral sales rose 7 per cent after a 4 per cent fall in 2014. Adidas reiterated it expected 2015 sales to rise by a medium single-digit percentage rate on a currency neutral basis, after a 6 per cent increase in 2014, while net profit from continuing operations should climb 7-10 per cent.

Adidas achieved double-digit sales growth in running and at its sports-inspired fashion brands Originals and NEO. REUTERS