Logo wars at Olympics may slow Adidas profit

SONIA O'Sullivan's well publicised anguish with sportswear promoters unseemly jockeying for logo dominance on her graceful frame…

SONIA O'Sullivan's well publicised anguish with sportswear promoters unseemly jockeying for logo dominance on her graceful frame has much in common with the more mundane commercial pressures heaped on parents of image conscious teenagers. While having their gear on the Sonia O'Sullivans of this world is important, the really big bucks go on selling the illusion that life is not worth living if your sweat shirt does not also carry, a fashionable manufacturers name or symbol.

The Germany Adidas company, one of the biggest and most aggressive names in the business, this week produced buoyant first half figures, with net profits rising 40 per cent to £80 million on sales growth of 28 per cent. The famous three stripes were to the forefront at both the Atlanta Olympics and the European football championships but heavy promotional costs are expected to slow earnings growth in the second quarter.

Chief executive Louis Dreyfus says the Adidas logo "featured prominently, but it cost us plenty".