Adidas’s North America Sales Jump 26% After Outlook Raisedby and
Greater China is fastest-growing region with 30% growth
Adidas last week raised sales, profit forecast for 2016
Adidas AG reported a 26 percent rise in North American sales, underscoring a comeback that’s seen the athletic-shoe maker reclaim market share in the U.S. from Nike Inc.
Second-quarter sales in North America were 788 million euros ($878 million), Herzogenaurach, Germany-based Adidas said in a statement Thursday. Greater China was the company’s fastest-growing region, with revenue increasing 30 percent. Adidas last week published preliminary second-quarter earnings, raising its full-year sales and profit forecast for the fourth time in 2016.
Chief Executive Officer Herbert Hainer has stepped up the sportswear maker’s presence in the key American market by bolstering product design and marketing. The rejuvenation comes as he prepares to hand the top job to Kasper Rorsted on Oct. 1. Adidas and Under Armour Inc. are growing fastest in the U.S. and taking market share from leader Nike, Kepler Cheuvreux analyst Juergen Kolb has said.
Shares of Adidas had gained 65 percent this year through Wednesday, making the stock the DAX’s best performer after being its worst in 2014. The most recent boost to its forecast came after Adidas got a lift from the Euro 2016 soccer tournament and a payment to bring an early close to a sponsorship deal with England’s Chelsea club.
Adidas also reiterated its forecast that currency-neutral sales growth this year will increase in the “high teens," while profit from continuing operations will increase as much as 39 percent, approaching 1 billion euros.
Second-quarter operating profit rose 77 percent to 414 million euros and sales increased 13 percent in euro terms to 4.4 billion euros, Adidas said, reiterating last week’s preliminary numbers.