• H1 net profit up 19% to EUR349m
  • Group sales up 13% to EUR6.337bn
  • CEO predicts record FY sales and earnings
Net profit for the second quarter was up 11% to EUR140m (US$199m)

Net profit for the second quarter was up 11% to EUR140m (US$199m)

Sporting goods giant Adidas is on the way to record sales and earnings in 2011 after first-half net profit rose 19% on the back of strong growth across the business.

Net profit for the second quarter was up 11% to EUR140m (US$199m) as revenues increased 5%, or 10% currency neutral, to EUR3.06bn.

Revenues in Western Europe increased 5% in the period, but emerging markets in Europe surged up 21% thanks to strong increases at both Adidas and Reebok.

North America was up 5%, boosted by double-digit growth at Adidas and TaylorMade-Adidas Golf, while Greater China surged up 41% thanks to strong growth in all major categories.

Other Asian markets and Latin America recorded revenue growth of 6% and 8% respectively.

Group gross margin was up by two percentage points to 49.2% despite higher raw materials costs, helped by a larger share of higher-margin retail sales.

In the first half as a whole, retail sales were up 21%, with comparable store sales rising 15% and wholesale revenues increasing 13%, Adidas said.

“After outlining our strategic vision for the company through to 2015 late last year, we have wasted no time and come out of the starting blocks in typical Adidas Group fashion – fast and focused,” said Herbert Hainer, Adidas CEO.

“No matter which way we break down our results – by segment, by region or by brand – all facets of our business are excelling.”

Adidas increased its full-year guidance, predicting 2011 sales to go up by about 11% currency neutral, with earnings per share reaching EUR3.10-3.12.

“Despite severe external pressures from currency volatility and rising commodity prices, we were able to defend our profitability as a result of our unparalleled strength in innovation and design, as well as supply chain excellence,” said Hainer.

“After the strong first half performance, we are on our way to record sales and earnings in 2011.”