Adidas winning race to meet 2015 targets
German sporting goods giant Adidas said it expects sales of soccer and running gear to help it achieve its 2015 sales and profit targets, despite falling behind on growth targets.
In 2010, Adidas set out plans to increase sales to €17bn in 2015 and reach an operating margin of 11pc that year.
Those targets had come under scrutiny in recent weeks after it warned on 2013 profit in September.
"After three years, we are not where we thought we would be in terms of the numbers," Adidas chief executive Herbert Hainer said yesterday, citing high raw material costs, adverse currency movements and a weak European market as problems.
However, he confirmed the 2015 goals and said sales would rise by a high-single-digit percentage in 2014, when adjusted for currency effects, while its operating margin would increase by one percentage point next year.
"This development will be driven by growth in all brands, regions and markets in 2014, with running and football as key drivers," the company said. Adidas has said it is counting on next year's soccer World Cup in Brazil to drive sales.
"We know we can deliver the big results when it counts," added Mr Hainer, saying the group had already increased sales by almost €3bn between 2010 and 2012.
Adidas is the world's second-largest sportswear maker, behind US rival Nike, in terms of sales.
Analysts expect Adidas to report 2015 sales of €16.4bn, and €14.5bn this year. An 11pc operating margin would mean increasing margins by 2.5pc over 2014 and 2015. The operating margin is expected to reach 8.5pc this year, a 1pc increase compared with 2010.
While the group can expect a revenue boost from next year's soccer World Cup, it is also set to require significant marketing spend, according to analysts. Adidas shares were down 1pc at €88.36 each. (Reuters)