Adidas forecasts growth after record earnings

27th January 2005, Comments 0 comments

27 January 2005, HERZOGENAURACH - German-based sportswear giant Adidas-Salomon forecast on Thursday more growth after announcing record earnings of EUR 314 million in 2004. Earnings shot up 21 percent as consumers yearned for shoes and clothing like those worn by stars at the Athens Olympic Games and the European football championships in Portugal. Provisional figures showed world sales up 3 percent to EUR 6.48 billion, but the company said growth would have been 7 percent if it had not been for exchange r

27 January 2005

HERZOGENAURACH - German-based sportswear giant Adidas-Salomon forecast on Thursday more growth after announcing record earnings of EUR 314 million in 2004.

Earnings shot up 21 percent as consumers yearned for shoes and clothing like those worn by stars at the Athens Olympic Games and the European football championships in Portugal.

Provisional figures showed world sales up 3 percent to EUR 6.48 billion, but the company said growth would have been 7 percent if it had not been for exchange rate shifts such as the sharp weakening of the dollar.

At company headquarters in Herzogenaurach, chief executive Herbert Hainer said the world's second-biggest sportswear group aimed to lift earnings a further 10 to 15 percent this year, saying, "2005 will be another extraordinarily successful year."

He attributed the gains to an improvement in gross margins as the company cuts out middlemen by opening more of its own stores and sheds lines that sell weakly.

The average gross margin had risen 2.3 percentage points to 47.2 percent, the highest level Adidas-Salomon has ever achieved, he said.

On the Frankfurt Stock Exchange, Adidas-Salomon stock traded at EUR 116.40, falling slightly after analysts said the earnings were a little below their average forecast of EUR 318 million. Final 2004 figures are due out on 9 March.

DPA

Subject: German news 

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