Adidas-Salomon, which is the world’s second-largest sporting-goods maker, has agreed to sell the Salomon part of the business to Amer Sports of Finland for 485 million euros. Salomon, which accounted for a tenth of the company’s sales, has been a drag on earnings.
Not helped by poor skiing weather, its operating losses in the first three months of the year widening to 20 million euros from 16 million a year ago. Adidas will now concentrate on footwear, clothing and golf products. Amer said the two businesses would work well together geographically and it expects savings of around 40 million euros by the end of 2008 from synergies and restructuring.
Shares in Adidas and Amer rose over 7%.
As it announced the sale, Adidas also said its net profit in the first quarter of this year jumped 46% to 105 million euros thanks to strong growth in Asia and the Americas. Adidas managed to keep orders in Europe almost flat, unlike its German rival Puma, which disappointed investors with poor orders in its key European business last week.
The companies share have risen around 24% in the past year, Puma has fallen around seven and a half per cent. The biggest athletic shoe maker, Nike, climbed 6.5%.