Adidas Shares Advance as Second-Quarter Sales Surge on World Cup Soccer
Adidas AG, the world’s second- largest sporting-goods maker, jumped in Frankfurt trading after reporting a surge in profit on soccer’s World Cup.
The shares rose as much as 2.28 euros, or 5.5 percent, to 43.93 euros, the steepest intraday gain since Sept. 16.
Second-quarter net income increased to 126 million euros ($162 million) from 9 million euros a year earlier, Herzogenaurach, Germany-based Adidas said yesterday after markets closed. That beat the 70.9 million-euro average estimate of four analysts. Revenue rose 19 percent to 2.9 billion euros.
Adidas last month raised its forecast for 2010 soccer- related sales to at least 1.5 billion euros because of the World Cup. The company sponsored 12 of the 32 teams that participated at the monthlong tournament, including host nation South Africa and eventual winner Spain.
“The company has benefitted from the great success of its teams, including Spain, Germany and Argentina,” said Klaus Kraenzle, an analyst at GSC Research in Dusseldorf.
Adidas said it reported the preliminary figures because they were “materially above market expectations.” The company plans to report full results for the quarter on Aug. 4.
Adjusted for changes in currency-exchange rates, sales for the quarter rose 11 percent, Adidas said. Per-share profit increased to 60 cents from 6 cents, the company said.