Adidas Lifts Outlook for Sales and Earnings as Sportswear Surges

HERZOGENAURACH, Germany — Adidas AG increased its forecast for revenue and profit as it benefits from strong sales of its sportswear and retro shoes and a streamlining of its brand portfolio.

Adidas now expects net income from continuing operations to rise between 26 percent and 28 percent for the full year, up from an earlier range of 13 percent to 15 percent. That would lift the total to between €1.36 billion ($1.59 billion) and €1.39 billion.

The German sporting-goods company also raised its outlook for the increase in revenue at constant currencies to between 17 percent and 19 percent, up from a range of 12 percent and 14 percent earlier. Adidas reported the increased outlook in a statement Thursday.

Adidas is benefiting from booming demand for retro shoes and a steady stream of new models that made the brand a hot commodity in the US after it fell out of favour for years, helping it narrow the gap to industry leader Nike Inc. It’s also capitalising on a growing middle class in China, which is adopting a more active lifestyle, and strong demand for more fashionable sportswear worn outside of gyms.

Earlier Thursday, Adidas said it agreed to sell its CCM hockey unit to Canadian private-equity firm Birch Hill Equity Partners for $110 million.

By Richard Weiss; editor: Eric Pfanner.