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Adidas net profit rises in first quarter

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(Globalpost/GlobalPost)

Europe's biggest sportswear maker Adidas said Friday that its net profit grew six percent to 308 million euros ($403 million) in the first quarter and forecast full-year net earnings of up to 920 million euros.

The German company that competes against Nike and Puma said revenue was down 1.9 percent at 3.75 billion euros, blaming negative currency effects.

"Our group has delivered a solid performance in the first quarter of 2013," said Adidas Group chief executive Herbert Hainer in a statement.

"We delivered stable revenues, despite running against high prior-year comparisons due to the sell-in of event-related products for the London Olympics and the European Football Championships as well as facing a continuation of macroeconomic challenges in Europe."

Group operating profit increased eight percent to 442 million euros in the first quarter of 2013 against 409 million euros a year earlier.

Worldwide, Adidas sales grew in most regions but fell six percent on a currency-neutral basis in Western Europe, especially in Spain, Italy and Britain, the company said.

Sales increased six percent in China and were also up in North and South America, Russia, the Middle East and South Africa.

The company said that "despite a high degree of uncertainty regarding the global economic outlook and consumer spending, Group sales development will be favourably impacted by the Group's high exposure to fast-growing emerging markets."

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http://www.globalpost.com/dispatch/news/afp/130503/adidas-net-profit-rises-first-quarter