adidas-Salomon unfazed by lower first quarter profits
Sportswear group adidas-Salomon AG today announced a drop in first quarter profits. However, the company said it was fully confident of hitting its 2002 income growth forecasts, citing a continuing surge in US orders.
Operating profits fell 20.9% to Eur98 million as World Cup sponsorship expenses, the buyout of adidas Italy and the expansion of the company’s network of brand shop all took their toll on the balance sheet. adidas sales meanwhile rose 5.1 percent to Eur1.638 billion, in line with market predictions, with an 8% increase posted in clothing sales being attributed to strong demand ahead of the World Cup.
Footwear sales were up by only 3% year-on-year, though the company was hopeful that its newly-launched Clima Cool and a3 (a cubed) lines of shoes would positively impact on second quarter sales. Sales of the winter sports brand Salomon increased by just 2% to Eur 123 million euros – the main factor being a weak winter season.
