Adidas bolts to unexpected earnings in first quarter | Business| Economy and finance news from a German perspective | DW | 30.04.2012
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Adidas bolts to unexpected earnings in first quarter

German sports clothing company Adidas has said it's secured a steep rise in sales and profit for the first quarter of 2012. Business has been particularly brisk in China and Japan, and the rally is set to go on.

Sports clothing giant Adidas of Germany blew past analysts' expectations with regard to first-quarter sales and profit, the company announced on Monday.

Sales rose by 17 percent year-on-year in the January through March period to a total of 3.8 billion euros ($5.03 billion). Net profit increased by 38 percent on the year, reaching 289 million euros.

Economic experts polled by Reuters had only expected earnings of 232 million euros and revenues to the tune of 3.59 billion euros.

Racing on

Adidas said the positive first-quarter result had been achieved mainly because of high demand for the company's sports items in China and Japan, but also through the sales activities of its subsidiary TailorMade-adidas Golf.

Managers from the Herzogenaurach-based firm are anticipating excellent sales in Europe in the weeks ahead as the European soccer cup draws nearer. Adidas on Monday revised upwards its profit forecast for the whole of 2012, expecting earnings to rise by 17 percent up to 785 million euros.

The company acknowledged, though, that there had been financial irregularities in its business in India which might reduce net profit by 125 million euros. No further details were given.

hg/nk (Reuters, dpa)