Adidas says soccer, running will help it hit 2015 targets
By Victoria Bryan
FRANKFURT (Reuters) - German sporting goods maker Adidas (ADSGn.DE: Quote) is counting on soccer, running and a host of new shirts and shoes to help it achieve profit and sales growth in 2014 and hit its 2015 goals, the company said on Tuesday.
Adidas, the world's second largest sportswear maker behind Nike (NKE.N: Quote), is aiming to increase sales to 17 billion euros in 2015 and increase its operating profit margin to 11 percent that year, compared with 11 billion and 7.5 percent in 2010.
Those targets had come under scrutiny after Adidas warned on profit in September, but Chief Executive Herbert Hainer said Tuesday at an event for investors the group would reach them.
He predicted 2014 sales would rise by a high single-digit percentage when adjusted for currency effects, helped by sales of soccer and running products, while its operating margin would increase by 1 percentage point next year.
Still, that means Adidas will also need a similar level of sales growth in 2015, a year without any big sporting events, as well as a 150 basis point increase in its margin to reach the medium-term targets.
"We believe we can grow the business by launching a lot of new innovative products," he told journalists, adding that measures to cut costs such as streamlining warehouses and cutting product ranges would also bear fruit in time for 2015.
"Our pipeline of new, exciting products is full," he said.
For example, Adidas would be extending the cushioning technology used in its Boost running shoes, launched this year, to other categories, such as basketball, he said. Adidas expects to sell 15 million pairs of Boost shoes in 2015. Continued...