Adidas fourth quarter profits exceed forecasts
05 March 2009 09:42
Adidas AG has reported fourth quarter profits ahead of estimates. Fourth quarter operating profit rose by 77% to Eu107 million, beating analysts' forecasts of Eu98 million, with sales up 6.4% to Eu2.57 billion. The group is predicting lower sales and earnings this year as consumers cut spending in what chief executive officer Herbert Hainer called "an unprecedented economic crisis".
Annual profit increased by 16% to Eu642 million, "representing the eighth consecutive year of double-digit earnings growth". Revenue rose by 4.9% to Eu10.8 billion. Adidas said that it had met its own forecasts for an increase of "at least 15%" in net income and a "high-single digit" sales rise. Full year sales rose by 14% excluding current fluctuations under the group's own brand, but fell by 2% at Reebok.
Mr Hainer concluded: "We cannot ignore the unprecedented economic crisis all global businesses are facing today. I believe the real winners of this crisis will be the ones who remain consistent with their long-term strategies. We have the resources and the energy to tackle the challenges that come".
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