Adidas profits surge on strong own-brand sales

GERMAN sportswear giant Adidas yesterday reported a spike in thirdquarter profits powered by strong demand for its own-brand products, as it drafted in Victoria Beckham to help boost its struggling Reebok unit. The Bavarian company, which sponsors English Premier League giants Manchester United, said net profit soared to 526 million euros ($611 million) between July and September, up 36 percent on the same period last year. Group revenues grew by nearly nine percent to 5.7 billion euros, driven by brisk online sales in all regions and the success of Adidas’ retroinspired Originals trainers and its adidas neo urban fashion line. Demand was especially robust in the key markets of China and North America, where sales of the three-striped brand increased by around a third, Adidas said. Adidas continues to expect group sales to grow by 17 to 19 percent in 2017 to achieve net profit between 1.36 and 1.39 billion euros. Like its smaller homegrown rival Puma, Adidas has been gaining ground in the US at a time when market leaders Nike and Under Armour are stalling.