(November 8, 2012) -- Adidas AG reported a 14 percent rise in third quarter earnings but lowered its full year revenue forecast due to declines of its Reebok brand and the National Hockey League lockout in North America. It had previously forecast a full year rise of around 10 percent but now expects revenues to increase high single digits.
Adidas Group currency-neutral sales grow 4 percent in the third quarter of 2012
In the third quarter of 2012, Group revenues grew 4 percent on a currency-neutral basis, driven by double-digit sales increases in Retail. Currency-neutral revenues in Western Europe increased 1 percent, supported by sustained momentum at Adidas. In European Emerging Markets, currency-neutral sales grew 19 percent as a result of strong increases at both Adidas and Reebok. Group sales in North America were down 5 percent on a currency-neutral basis, as double-digit increases at Adidas and TaylorMade-Adidas Golf were more than offset by strong revenue declines at Reebok. In Greater China, Group sales were up 11 percent on a currency-neutral basis, driven by double-digit increases at Adidas as well as growth at Reebok. Currency-neutral revenues in Other Asian Markets increased 1 percent as growth at Adidas was partly offset by a strong sales decline at Reebok. In Latin America, currency-neutral sales grew 16 percent, driven by double-digit growth at Adidas, TaylorMade-Adidas Golf and Rockport. From a brand perspective, third quarter sales at Adidas increased 10 percent currency-neutral. Sales in the TaylorMade-Adidas Golf segment grew 4 percent on a currency-neutral basis. Reebok sales declined 25 percent on a currency-neutral basis, largely as a result of the non-recurrence of prior-year licence sales as well as negative impacts from Reebok India Company. Currency translation effects had a positive impact on sales in euro terms. Group revenues grew 11 percent to €4.173 billion in the third quarter of 2012 from €3.744 billion in 2011.
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