Adidas has strong 2nd quarter, but Reebok still limping
Wednesday, 6 August 2008
FRANKFURT, Aug 5 (AFP): Adidas, the second biggest sports equipment maker, posted today a 12 per cent increase in second quarter net profit, although its troubled US unit Reebok saw first-half sales fall by 11 per cent.
Adidas recorded a net profit of 116 million euros (180 million dollars), in part owing to a reduced tax rate, it said in a statement. Group sales gained five per cent to 2.52 billion euros from the same period one year earlier, while operating profit was up by 10.3 per cent at 208 million.
But Reebok's results continued to lag behind, as the group posted sales of 469 million euros over the three-month period, a drop of 8.8 per cent from the second quarter of 2007.
For the first half, Reebok sales lost 11.1 per cent to 923 million euros.
The division's order backlog decreased by 21 per cent when adjusted for foreign exchange effectes, which the group said reflected the "short-term impact of strategic initiatives to revitalize the Reebok brand in the USA, the UK and Japan."
Adidas chief executive Herbert Hainer was quoted as saying that "we have laid the foundation at Reebok for continued improvement in the second half of the year."
Meanwhile, the parent company was "firmly on track to achieve all of our financial goals for 2008," Wainer said.
"We even expect to exceed some of our original goals," he added without elaborating.
Adidas recorded a net profit of 116 million euros (180 million dollars), in part owing to a reduced tax rate, it said in a statement. Group sales gained five per cent to 2.52 billion euros from the same period one year earlier, while operating profit was up by 10.3 per cent at 208 million.
But Reebok's results continued to lag behind, as the group posted sales of 469 million euros over the three-month period, a drop of 8.8 per cent from the second quarter of 2007.
For the first half, Reebok sales lost 11.1 per cent to 923 million euros.
The division's order backlog decreased by 21 per cent when adjusted for foreign exchange effectes, which the group said reflected the "short-term impact of strategic initiatives to revitalize the Reebok brand in the USA, the UK and Japan."
Adidas chief executive Herbert Hainer was quoted as saying that "we have laid the foundation at Reebok for continued improvement in the second half of the year."
Meanwhile, the parent company was "firmly on track to achieve all of our financial goals for 2008," Wainer said.
"We even expect to exceed some of our original goals," he added without elaborating.