Adidas profits boosted by growth in China, Europe

Growth in China and rich European countries boosted profits for German sportswear and equipment maker Adidas which on Thursday reported an 11-percent hike in second quarter net profit. Profits hit 140 million euros ($200 million) during that period and were expected to reach 650 million euros for the year, it added. Adidas raised its 2011 sales growth forecast to 10 percent, from a previous outlook of less than 10 percent, owing to strong demand for its products notably in China, France, Germany, Spain and Italy. At 0855 GMT, Adidas shares were up 4.84 percent in Frankfurt at 51.20 euros. Despite the financial crisis in Europe and the United States, Adidas said it had managed to boost sales and maintain profits. "When you bring to the market items attractive to customers you can be successful even during a crisis," Adidas boss Herbert Hainer told a conference call. In the United States, the company's Reebok brand continued to increase its market share despite consumer worries about the economy, Hainer said. Like its competitors, Adidas has been forced to pay higher prices for its raw materials, especially cotton, but the group managed to reduce marketing costs and increase some prices, thereby maintaining both margins and profits. Second-quarter sales rose five percent to 3.06 billion euros, in line with market expectations. Adidas also said that profit per share should rise to between 2.98 and 3.12 euros, which on the basis of the number of shares currently in circulation, would mean a net profit of 648-652 million euros for the year.