Adidas Q1 revenue, profit up; officials project 10 percent growth for 2012

Adidas Group reported its first-quarter 2012 revenue up 17 percent, on a constant euro basis, and its profit rose as well. The company's North American sales rose 11 percent in local currencies.
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Adidas Group reported higher revenue and profit for the first-quarter 2012, and officials increased full-year growth projections to 10 percent.

The German athletic and outdoor footwear, apparel and sporting goods giant reported revenue up 17 percent, on a constant euro basis, to EUR 3.824 billion ($5.02 billion), compared to a year ago. Adidas’ quarterly net income rose to EUR 289 million ($380 million), versus EUR 209 million ($275 million) last year.

Sales in North America rose 11 percent in local currencies and 16 percent in euro to EUR 869 million ($1.14 billion).

Elsewhere, on a euro constant basis, sales rose by:

36 percent in Greater China to EUR 385 million

33 percent in other Asian markets to EUR 594 million

16 percent in emerging European markets to EUR 430 million

14 percent in Latin America to EUR 372 million

7 percent in Western Europe to EUR 1.174 billion

Based on the performance plus expected gains from global sporting events, such as the 2012 Summer Olympics in London, officials raised their projections for full-year 2012 growth to 10 percent, versus a previous projection of a mid- to high-single-digit percentage increase.



“Despite the high degree of uncertainty regarding the global economic outlook and consumer spending, group sales development will be favourably impacted by its high exposure to fast-growing emerging markets as well as the further expansion of retail,” officials said in the earnings release Thursday.

The company did not break out its results for its Adidas Outdoor segment. At last check, its outdoor revenue rose 40 percent for the full-year 2011 (including its Five Ten acquisition) to a SNEWS estimated EUR $280 million ($372 million). The company has a goal for Adidas Outdoor to reach sales of EUR 500 million per year by 2015.

--David Clucas

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