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Adidas takes Reebok impairment, sticks to 2018 outlook

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By Reuters
Adidas takes Reebok impairment, sticks to 2018 outlook
FILE PHOTO: An Adidas logo is seen at the new Futurecraft shoe unveiling event in New York City, New York, U.S. April 6, 2017. REUTERS/Joe Penney/File Photo   -   Copyright  Joe Penney(Reuters)

BERLIN (Reuters) – German sportswear firm Adidas <ADSGn.DE> has taken an impairment charge on its struggling Reebok brand, but said the retrospective accounting move would have no impact on its 2018 results as it reported a better-than-expected second quarter.

Sales came in at 5.26 billion euros (£4.74 billion), a rise of 10 percent after currency effects, and ahead of average analyst forecasts for a rise of 8 percent.

Net profit from continuing operations rose 20 percent to 418 million euros, also beating analyst expectations for 386 million.

However, Adidas said it was taking an a medium triple-digit million euro impairment related to the Reebok trademark in 2016 after the German Financial Reporting Enforcement Panel disagreed with how it calculated historical book value.

But it said the restatement had no impact on its cash position and reiterated its guidance for 2018 and beyond, adding that Reebok’s prospects were unchanged, even as the brand reported a 3 percent fall in sales in the second quarter.

(Reporting by Emma Thomasson; Editing by Maria Sheahan)