Adidas to intensify marketing drive as U.S. sales rebound
By Emma Thomasson
BERLIN (Reuters) - German sportswear company Adidas (ADSGn.DE: Quote), trying to muscle into Nike's (NKE.N: Quote) home territory, plans to increase spending on marketing again after high-profile sponsorship deals and celebrity partnerships helped rekindle U.S. sales.
Adidas said it would seek to build on its momentum by lifting promotional spending further in the run-up to Christmas. The firm had said it would spend 13-14 percent of sales on marketing this year, compared with 10-11 percent for most rivals.
The world's second-biggest sportswear firm has scored with "Yeezy" sneakers designed by Kanye West and soccer kit for Manchester United MANU.N and Italian champions Juventus launched this summer after it displaced Nike as new suppliers to both teams.
After slipping last year into third place in the U.S. market behind Nike and fast-growing Under Armour (UA.N: Quote), Adidas has made a big push in North American sports, agreeing a partnership with the National Hockey League (NHL) and sponsorship deals with top NHL and National Football League (NFL) players.
Adidas will seek to capitalize on those deals as well as launching a major basketball campaign, Chief Executive Herbert Hainer told a conference call for journalists. Its campaign for the 2016 European soccer championship will start next week when it launches the new German national team jersey.
Third-quarter sales of 4.76 billion euros ($5.17 billion) were up 18 percent, or 13 percent excluding the impact of currencies, beating an average analyst forecast for 4.5 billion euros and accelerating from 5 percent the previous quarter.
Attributable net income rose 10 percent to 311 million euros, ahead of consensus forecasts for 306 million.
Adidas shares, up 49 percent this year, jumped 5 percent by 0957 GMT, making them the biggest gainer in a 0.3 percent firmer German blue-chip index .GDAXI. Continued...