ADIDAS yesterday raised its profit forecasts after the World Cup fuelled a retail sales lift of 20 per cent in the first half of the year.
The world’s second biggest sporting goods maker after Nike, said it expects full-year net profit of €520m (£430m) to €550m.
Adidas supplied the Jabulani World Cup match balls and teams including host nation South Africa and champions Spain, used Adidas gear. The company said the competition would boost 2010 revenues from football-related products to at least €1.5bn.
Chief executive Herbert Hainer said: “We had an outstanding first half year driven by the FIFA World Cup 2010, and the resurgence of the Reebok brand in North America.”
The company expects its gross profit margin for 2010 to be 47.5 per cent, up from 45.4 per cent. It also said operating margin would be about 7.5 per cent, compared with 4.9 per cent last year.
It had raised its outlook in May, saying 2010 profit would rise to between €430m and €480m after weak results last year.
It reported on 22 July that second-quarter net profit had jumped fourteen-fold, exceeding analyst estimates. Puma, which comes in behind Adidas and Nike, last week scrapped its full-year pre-tax profit forecast. Nike, which competes directly with Adidas in the football market, is due to report its first-quarter earnings on 23 September.