• Q1 profit soars to EUR168m from EUR5m
  • Group sales up 4% to EUR2.674bn
  • Sees positive impact from FIFA World Cup
Adidas is optimistic about World Cup trade

Adidas is optimistic about World Cup trade

Sporting goods giant Adidas Group today (4 May) said it "had a great start to the year," with a huge hike in profit prompting it to raise its full-year outlook ahead of the forthcoming FIFA World Cup.

Net income surged to EUR168m (US$220m) during the first quarter of 2010, from EUR5m in the same period last year.

Group sales grew 4% to EUR2.674bn, driven by double-digit retail growth. Wholesale revenues increased 1% to EUR1.898bn.

Sales increased in all regions except Greater China and Other Asian Markets, Adidas said, with Western Europe up 5% to EUR945m and North America rising 10% to EUR585m.

Revenues in Greater China were down 20% to EUR198m.

Adidas added that inventories fell 17% to EUR1.680bn at the end of March 2010.

“We had a great start to the year, achieving record first quarter sales driven by growth in all segments,” said Herbert Hainer, Adidas Group CEO.

”Our Retail segment, record football sales and a strong performance for Adidas and Reebok in North America were some of the main catalysts driving this development.”

The company also upped its forecast for sales to increase at a mid-single-digit rate on a currency-neutral basis in 2010, from low- to mid-single-digits previously.

The improved outlook was based on positive impacts expected from June's FIFA World Cup, the group’s high exposure to emerging markets and improvements at the Reebok brand.

Click here to view the company's full financial statement.