Adidas Chief Hainer Sees ‘Significant’ Revenue Increase in 2014Julie Cruz
Adidas AG Chief Executive Officer Herbert Hainer expects a significant revenue increase next year, boosted by sales of national team shirts and official balls for the soccer World Cup in Brazil.
The world’s second-largest maker of sporting goods is on track to reach a target of 17 billion euros ($23 billion) in annual revenue in 2015, spokeswoman Katja Schreiber said by telephone, confirming Hainer’s comments to German newspaper Handelsblatt. Analysts expect revenue to rise about 7 percent to 15.7 billion euros next year from 14.6 billion euros this year, according to estimates compiled by Bloomberg.
“Nobody expects anything less than a significant revenue increase next year,” said Joerg Philipp Frey, an analyst at M.M. Warburg in Hamburg, by phone. “If they don’t have a significant increase then it’s definitely a bad thing because it would mean they have to review their guidance. It’s not really spectacular.”
Adidas cut its 2013 profit forecast last month because of Russian distribution difficulties, a weak golf market and the strength of the euro. The company has been pushing product categories including running and fitness this year because of the lack of a major soccer event. Hainer said in June that soccer sales will rise to a record 2 billion euros next year.
Adidas shares gained as much as 2.9 percent to 81.16 euros and traded up 2.4 percent as of 5:16 p.m. in Frankfurt. Germany’s benchmark DAX Index rose 1.9 percent.