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NEW YORK — Adidas AG continues to capitalize on momentum from recent launches.
“There’s a lot of good product out there, and the firm [has] differentiated stuff like the AdiZero and Reebok ZigTech, which seem to be firing on all cylinders,” said Paul Swinand, analyst at Morningstar Inc.
Christopher Svezia, analyst at Susquehanna Financial, noted, “All their stuff is coming together, with stabilization in some markets and growth in others, such as China. The Adidas business in North America continues to do very well.”
Adidas America President Patrik Nilsson said in a statement that “demand for our lightweight AdiZero range, ongoing success in our Originals business, [plus] successful sell-through of the AdiZero Crazy Light in basketball and AdiZero 5-Star drove our double-digit growth and largest second-quarter growth rate in five years.”
The Adidas group’s second-quarter profit rose 11 percent year-on-year as it posted strong sales across all segments and regions. Net income was 140 million euros, or $198.2 million at current exchange. On a currency-neutral basis, sales climbed 10 percent to 3.1 billion euros, or $4.3 billion, despite rising input costs and the negative impact of the strong euro. By region, greater China was the strongest growth market, with revenue there up 41 percent. Sales advanced 5 percent in North America.
The company also raised its full-year guidance for the third time, saying it now expects earnings per share to increase 15 percent.
“After the strong first-half performance, we are on our way to record sales and earnings in 2011,” Adidas CEO Herbert Hainer said in a statement.
For more earnings coverage, check out Footwearnews.com.