Adi­das counts on Rio to bring home gold

The Myanmar Times - - International Business -

GER­MAN sports gear maker Adi­das is look­ing to the Rio Olympics to take its spon­sor­ship ba­ton in a year when big sport­ing events have al­ready boosted busi­ness.

Sales at the group's core brand leapt 25 per­cent in the se­cond quar­ter thanks to events in­clud­ing the Euro 2016 foot­ball tour­na­ment.

Higher sales of items branded with the Bavarian firm's fa­mous three stripes were “mostly due to two-digit in­creases in the im­por­tant cat­e­gories of run­ning, foot­ball and train­ing, as well as Adi­das Orig­i­nals and Adi­das neo,” two fash­ion branches, the firm said.

The Olympic games would be a “broad win­dow” for Adi­das to show off its dif­fer­ent brands and tech­nolo­gies, chief ex­ec­u­tive Her­bert Hainer said from Rio in a con­fer­ence call last week.

“We now ex­pect to be able to com­pen­sate al­most all of the se­vere head­winds we will be fac­ing this year,” in­clud­ing un­favourable ex­change rates and high labour and ma­te­ri­als costs, Mr Hainer said.

Fol­low­ing the boost from Euro 2016, Adi­das-spon­sored ath­letes and teams will be in the spotlight again at the Rio Olympics.

Adi­das saw dou­ble-digit sales growth in sev­eral global mar­kets in the se­cond quar­ter, with a 32pc gain in north Amer­ica and 30pc each in west­ern Europe and China.

Sales grew more slowly in Rus­sia and the Com­mon­wealth of In­de­pen­dent States at just 5pc – slightly al­lay­ing fears of a blow to the brand from Rus­sia's eco­nomic slow­down.

Across the whole group, rev­enues soared be­tween April and June by 13p to 4.4 bil­lion eu­ros (US$4.9 bil­lion), Adi­das re­ported in pre­lim­i­nary re­sults re­leased at the end of July.

Adi­das dou­bled its net prof­its over the same pe­riod in 2015 to 291 mil­lion eu­ros.

The strong re­sult in the se­cond quar­ter was partly down to Adi­das agree­ing to end its spon­sor­ship of Lon­don club Chelsea early in sum­mer 2017, bring­ing in an es­ti­mated 50 to 100 mil­lion eu­ros. –

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