Adidas Profit Misses Estimates as Demand Lags Last Year’s Cup

HERZOGENAURACH, Germany — Adidas AG reported profit that missed analysts' estimates as the maker of Lionel Messi soccer cleats couldn't match demand spurred by last summer's World Cup.

Second-quarter net income adjusted for some items was 146 million euros ($159 million), the company said in a statement Thursday. Analysts expected 148 million euros. Sales rose to 3.91 billion euros, compared with the 3.8 billion-euro average estimate of analysts surveyed by Bloomberg. Adidas said it hired an investment bank to study options what to do with its golf unit.

Chief Executive Officer Herbert Hainer is pouring money into marketing and pushing products to market faster under a plan intended to close a sales gap with rival Nike Inc., which has widened its lead over Adidas in the U.S. sports-gear market in recent years. The German sportswear maker’s results suffered from an unfavorable comparison to last year, when the World Cup soccer tournament inflated demand.

"I don't think we are really seeing the first signs of the turnaround strategy presented in March," said Cedric Rossi, an analyst at Bryan Garnier & Co. in Paris, who has a neutral recommendation on Adidas. He spoke before the results. "It's too early."

By Aaron Ricadela; editors: Matthew Boyle, Thomas Mulier, James Boxell.