Sun, 05 Aug 2018 02:46 IST
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Olympics Adds to Adidas’ Earnings

New York, August 3 (alphajetsusa.com) – German Sportswear brand, Adidas, has increased its earnings growth forecast to 15-17 percent. Earlier, the net profit guidance was 12-17 percent.

The company has made an investment of 100 million pounds, which is around $155.9 million in this summer’s London Olympics. It includes deals with athletes like sprinters Yohan Blake and Tyson Gay, in a bid to raise its global profile and close the gap with Nike Inc (NYSE: NIKE), which is the current market leader.

Adidas was also among the official sponsors of the Euro 2018 soccer tournament, which sponsored six teams, including the champion team Spain.

A day before, the company has reported net profit of worth EUR 165 million, which was a hike of 18 percent as compared to the previous year. The sales increased 15 percent during the year to EUR 3.52 billion, matching with the analyst’s expectation.

The results were in contrast with the main competitor of Adidas, Nike, which posted a fall of 7.6 percent in fourth quarter net profit in June. It was exceeding analysts’ expectations and was brought down by weaker margins, higher marketing costs and slower growth in China.