Adidas unfazed by Federation Internationale de Football Association scandal

Adidas raised its full-year outlook for sales and profits and said it should be able to repeat the performance next year, forecasting that currency-neutral sales and operating profit should both rise at a high-single-digit rate.

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Net income from continuing operations excluding goodwill impairment is now projected to increase at a rate of around 10% compared to net income from continuing operations excluding goodwill impairment losses of Euro 642 million in 2014. Nike plans to increase segment sales to $4.5 billion by FY20.

Chief Executive Officer Herbert Hainer is trying to turn around Adidas after a dismal 2014 and as the company seeks his successor after nearly 15 years under his leadership.

For the third quarter, the company reported net income attributable to the shareholders of 311 million euros, up 10.4 percent from 284 million euros a year ago.

Since then, the Adidas share price has jumped 44%, and on Thursday, Mr. Hainer was more bullish.

Currency-neutral revenues at Reebok and the once-faltering TaylorMade-Adidas Golf gained 3 percent and 6 percent, respectively, while Adidas enjoyed double-digit sales growth in Western Europe, North America, Greater China, Latin America and in the Middle East, Asia and Africa (MEAA).

‘Thanks to our outstanding performance during the first nine months, we are reaching the 2015 goal line much faster than we had anticipated, ‘ said Hainer. “I am telling you, we are winning big time”.

In the third quarter, net income from continuing operations grew 20% to €337m, while sales grew 13%. Mr.Hainer said Originals sales were up 33% in the quarter and described the momentum of the lifestyle business as “just fantastic”.

Russia/CIS sales in the third quarter decreased by 7%, due to sales declines at both adidas and Reebok.

In the meantime, Adidas will keep working to restructure the unit, suffering from sport’s declining popularity, and would cut its global staff by 14 percent by the end of the year, which would incur a small hit to group profits in the fourth quarter.

“No matter what the outcome of the strategic review will be, we continue to press ahead with our far-reaching restructuring plan”, Hainer, 61, said on a call with reporters.

The world’s second-biggest sportswear firm said currency-neutral sales in North America – where it has been spending heavily on marketing as it attempts to break the stranglehold of rival Nike – rose 6%, after a flat first half.

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