Adidas expects earnings bounce as it tries to catch Nike

No 2 supplier of sports gear preparing strategy announcement on March 26th

Adidas predicted profit growth for this year that matched analysts’ predictions for the struggling German sportswear maker as it pours money into catching up to larger rival Nike. Photograph: Krisztian Bocsi/Bloomberg

Fri Mar 06 2015 - 10:26

Adidas forecast a partial rebound in earnings this year as the struggling German sportswear maker pours money into catching larger rival Nike in America.

Net income will increase 7 to 10 per cent, excluding some items, such as the planned sale of the Rockport walking shoe division, Adidas said yesterday as it reported a 22 per cent drop in 2014 profit on that basis.

It also unexpectedly maintained its dividend, sending the shares to a seven-month high.

Adidas, the No 2 supplier of sports gear, is preparing to make a long-range strategy announcement on March 26th to explain how it will reverse its declining market share in the US and Europe. Adidas said it expects a margin of 6.5 to 7 per cent this year with revenue rising by a mid-single-digit percentage on a constant-currency basis. – (Bloomberg)