Adidas vows to hit profit target

German sporting goods maker Adidas said it expects sales of football and running gear to help it achieve its 2015 sales and profit targets, even though it has not yet made as much progress towards them as it originally hoped.
By The Newsroom
Published 4th Dec 2013, 00:01 BST

Adidas, the world’s second largest sportswear maker behind Nike in terms of sales, set out in 2010 plans to increase sales to 17 billion euros ($23bn) in 2015 and reach an operating margin of 11 per cent that year.

Those targets had come under scrutiny in recent weeks after it warned on 2013 profit in September. “After three years, we are not where we thought we would be in terms of the numbers,” Adidas chief executive Herbert Hainer said, citing high raw material costs, adverse currency movements and a weak European market as problems.

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However, he confirmed the 2015 goals and said sales would rise by a high-single-digit percentage in 2014, when adjusted for currency effects, while its operating margin would increase by 1 percentage point next year.

“This development will be driven by growth in all brands, regions and markets in 2014, with running and football as key drivers,” the company said.

Adidas has said it is in particular counting on next year’s football World Cup in Brazil to drive sales.

“We know we can deliver the big results when it counts,” added Hainer, saying the group had already increased sales by almost 3 billion euros between 2010 and 2012.

The 17 billion euro target compares with sales of 11 billion in 2010, the year when it set out the 2015 plans.

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