Adidas AG (ADS), the world’s second-largest sporting-goods maker, fell in Frankfurt trading after the company increased its 2011 earnings forecast to a level that was slightly less than analysts had estimated.
Earnings per share will rise about 16 percent to 3.15 euros ($4.32), the Herzogenaurach, Germany-based company said today, compared with the 3.20 average estimate of 22 analysts compiled by Bloomberg. Adidas had previously forecast growth of about 15 percent. The shares declined as much as 4.2 percent.
“Management guidance does not leave room for upgrades” of estimates for 2011 or 2012 earnings, analysts at Bank of America said in a note. They have a “buy” recommendation on the stock.
Adidas also reported third-quarter results that beat estimates, raised its 2011 sales forecast and said it expects earnings per share to increase 10 percent to 15 percent in 2012. The German company is boosting its presence in China, Russia and North America, where it plans to generate about half of a targeted 50 percent sales increase by 2015.
“Our brands and products are resonating with consumers around the world like never before,” Chief Executive Officer Herbert Hainer said in the statement.
The shares were down 3.8 percent at 49.46 euros as of 9:22 a.m., leading declines in the German benchmark DAX Index. (DAX)
Sales this year will gain about 12 percent on a currency- neutral basis, the company said. Adidas had previously forecast 2011 revenue growth of about 10 percent.
Third-quarter net income rose 14 percent to 303 million euros, beating the 296 million-euro average of nine analysts’ estimates compiled by Bloomberg.
Adidas also said today it will acquire Five Ten, a California-based provider of products for climbers and mountain bikers, for $25 million in cash. The German company has said it aims to reach a goal of 500 million euros in sales of outdoor products by 2015 without acquisitions. Five Ten will have revenue of about 16 million euros in 2011, the company said.
Hainer said last month he expects record soccer sales next year. Adidas has about 34 percent of the global soccer market and forecasts revenue from the category next year will exceed 2010’s 1.5 billion euros, boosted by the European championship finals. Adidas is the official partner of European soccer’s governing body UEFA for the finals, which start in June.
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