Adidas expects earnings bounce as it tries to catch Nike

Adidas forecast a partial rebound in earnings this year as the struggling German sportswear maker pours money into catching larger rival Nike in America.

Net income will increase 7 to 10 per cent, excluding some items, such as the planned sale of the Rockport walking shoe division, Adidas said yesterday as it reported a 22 per cent drop in 2014 profit on that basis.

It also unexpectedly maintained its dividend, sending the shares to a seven-month high.

Adidas, the No 2 supplier of sports gear, is preparing to make a long-range strategy announcement on March 26th to explain how it will reverse its declining market share in the US and Europe. Adidas said it expects a margin of 6.5 to 7 per cent this year with revenue rising by a mid-single-digit percentage on a constant-currency basis. – (Bloomberg)