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Adidas' profit jogs ahead

Adidas' profit jogs ahead
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Adidas has reported an 11.7% rise in second-quarter net income thanks to strong sales in emerging markets, the Euro 2008 football championships in June and this month’s Olympic games.

The world’s second largest sporting goods maker also slightly raised its outlook for this year on the expectation of better sales at the group’s Adidas brand. Net income rose to 116 million euros from 104 million euros a year earlier.

Overall sales rose 5% to just over 2.52 billion euros, above analysts’ expectations. They were up 16% in Europe, down 8% in North America, rose 25% in Asia and increased 29% in Latin America.

Things are still difficult though for Reebok, which Adidas took over in 2006. Reebok’s sales were down 11.1% in the first half of the year. But the merger has helped profitability through economies of scale, better terms with its suppliers and reduced costs.

Adidas also said it is less exposed than many of its competitors to the US market where a weakening economy is hitting spending.