• Q3 net profit up 14% to EUR303m
  • Group revenues rise 8% to EUR3.744bn
  • Retail growth offsets increased input costs

Sporting goods giant Adidas is set for a record year after third quarter profit rose 14% on an 8% revenue increase, with margins holding up thanks to increased retail sales.

On a currency-neutral basis, wholesale revenues were up 10% in the third quarter, while retail sales surged up 21%.

The latter helped to offset increases in input costs, but was not sufficient to stop a slight decrease in gross margins, down three percentage points to 47.1%, despite a more favourable sales mix.

Double-digit growth at Adidas and TaylorMade-Adidas Golf helped Europe to record a 10% revenue increase, while growth for Reebok and Adidas led to a 22% revenue hike for European emerging markets.

North America and China both recorded 13% revenue increases, the latter boosted by double-digit sales gains at Adidas Sport Style. Meanwhile, other Asian markets were up 7% and Latin America’s sales surged up 18%.

“Our record third quarter results were driven by growth in all key geographies, brands and channels,” said Herbert Hainer, Adidas group CEO.

“We will finish 2011 clearly exceeding our initial expectations after already surpassing our 2008 record earnings mark after the first nine months.”

Separately, the German sports group today (3 November) said it is buying outdoor action sports business Five Ten for US$25m, as part of plans to expand its outdoor segment.