Adidas beats expectations with 2 per cent 2014 sales rise

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German sportswear firm Adidas reported a better-than-expected 2 per cent increase in 2014 sales on Friday and said it would meet its profit target, excluding charges from the sale of its Rockport brand and a hit from the falling rouble.

In an unscheduled statement ahead of full results due on March 5, the world's second biggest sportswear firm behind Nike said 2014 sales hit 14.8 billion euros ($16.8 billion), beating a Thomson Reuters Smart Estimate for 14.68 billion.

Adidas said it would book goodwill impairment losses of around 80 million euros due to the significant fall of the Russian rouble, less than the 100 million euros it had predicted after the third quarter.

Shares in Adidas, which have dropped a third in the last year partly on rouble concerns, were up 3.5 per cent at 0830 GMT, beating a 1.2 per cent rise in Europe's retail index.

Adidas-beats-expectations-with-2-per-cent-2014-sales-rise

"Our strong sales momentum for adidas and Reebok continued through the fourth quarter, with the group recording double-digit growth in western Europe, Greater China, European emerging markets and Latin America," said Chief Executive Herbert Hainer.

Adidas also said attributable net income reached its target of around 650 million, not counting goodwill impairment losses and the impact of a sale of its Rockport shoe brand.

Adidas said in a separate statement it had sold Rockport for $280 million, forcing it to take a "double-digit million euro" hit to its 2014 results.

Adidas acquired Rockport when it bought Reebok in 2006. It is selling it to a new entity formed by Berkshire Partners and New Balance and expects the sale to be completed later in 2015. ($1 = 0.8814 euros)


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