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Adidas winning the profit race

Adidas winning the profit race
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Adidas has posted its highest-ever gross profit margin.

The German sporting goods maker credited sales of higher-priced products through its own stores.

That helped offset weak consumer spending in Europe and ongoing problems at its Reebok brand.

Sales have suffered having been previously boosted by events such as last year’s European football championships and the London 2012 Olympics.

However Chief Executive Herbert Hainer said new products would make up for that.

Reebok problems

A double-digit decline in wholesale revenues at Reebok, plus currency effects, impacted first-quarter group sales, which at 3.75 billion euros fell slightly short of analyst expectations.

Adidas has been grappling with problems at Reebok for over a year and took a 265 million euro write-down on the brand at the end of last year.

Reebok lost a big American football contract with the NFL, fraud was uncovered at its Indian operations and it was hurt by a lockout by U.S. hockey players at the end of last year.

Adidas has promised a major drive in fitness in 2013 to revive sales at Reebok. It is focusing the brand on sports like yoga, dance and fitness training.