Adidas Quarterly Profit Drops on Western Europe, North America

FRANKFURT, Germany — Adidas AG, the world's second-biggest maker of sporting goods, reported a drop in third-quarter profit as sales in western Europe and North America declined.

Third-quarter net income fell about 8 percent to 316 million euros ($427.4 million), the Herzogenaurach, Germany- based company said in a statement. That’s in line with the 316.9 million-euro average of 11 analysts’ estimates compiled by Bloomberg.

Adidas reduced its 2013 profit forecast in September because of the euro’s strength, disruptions related to a switchover to a new Russian distribution site and a weak golf market. The company has been pushing running and fitness products this year because of the lack of a major soccer event that usually provides an additional boost to Adidas’s annual profit. The German company announced a management shakeup at Reebok last month as it revamps the fitness brand after it weighed on Adidas’s growth since its acquisition of the brand in 2006.

Sales at Reebok gained 5 percent this quarter on a currency-neutral basis, Adidas said.

Adidas reiterated today that it expects net income of 820 million euros to 850 millions and an operating margin of about 8.5 percent this year.

By Julie Cruz; Editors: Thomas Mulier, Celeste Perri