The corruption scandal engulfing soccer's world governing body FIFA is not tarnishing the image of its long-standing sponsor Adidas, the chief executive of the German sportswear company said on Thursday.
Adidas said its sales of soccer products rose 19 per cent in the third quarter, helped by the launch of new “ACE” and “X” soccer boots and kits for new partners Manchester United and Italian champions Juventus.
"The image for our products have never been better so I am definitely convinced that the consumers clearly differentiates between us as a company and the brand and what's going on in FIFA," Herbert Hainer told a conference call for journalists.
Adidas has provided the World Cup match ball since 1970 and extended its partnership with FIFA until 2030 two years ago. The company faced criticism last month after declining to join other major sponsors and demand the immediate departure of FIFA President Sepp Blatter after Swiss authorities opened a criminal investigation into him. Blatter has denied any wrongdoing.
Muscling in on Nike
Meanwhile Adidas said it plans to increase spending on marketing again after high-profile sponsorship deals and celebrity partnerships helped rekindle US sales. Adidas said it would seek to build on its momentum by lifting promotional spending further in the run-up to Christmas. The firm had said it would spend 13-14 per cent of sales on marketing this year, compared with 10-11 per cent for most rivals. The world's second-biggest sportswear firm has scored with "Yeezy" sneakers designed by Kanye West and soccer kit for Manchester United and Italian champions Juventus launched this summer after it displaced Nike as new suppliers to both teams. After slipping last year into third place in the US market behind Nike and fast-growing Under Armour, Adidas has made a big push in North American sports, agreeing a partnership with the National Hockey League (NHL) and sponsorship deals with top NHL and National Football League (NFL) players.
Third-quarter sales of €4.76 billion were up 18 per cent, or 13 per cent excluding the impact of currencies, beating an average analyst forecast for €4.5 billion and accelerating from 5 per cent the previous quarter. Attributable net income rose 10 per cent to €311 million, ahead of consensus forecasts for €306 million.
Adidas shares, up 49 per cent this year, jumped 5 per cent on the news.
Reuters
