German sportswear giant Adidas AG said today its fourth quarter net profit jumped 151% on improved sales, a better tax rate and higher operating profits.
Adidas, the world’s second largest sportswear company by sales after Nike Inc., said net profit in the fourth quarter increased to euro54 million ($87.3 million) from euro21 million ($34 million) in the same period a year earlier.
Sales for the quarter rose 6% to euro2.57 billion from euro2.42 billion the previous year.
For the full year 2008, Adidas said net profit increased 16% to euro642 million from euro551 million a year ago.
Sales in 2008 rose 5% to euro10.8 billion from euro10.3 billion a year ago.
The company said the Adidas brand and the TaylorMade golf segment contributed to the year’s sales, while the Reebok brand saw revenues decrease compared to 2007.
Sales in constant euro terms increased 10% for the Adidas brand and 1% for TaylorMade. Reebok saw an 8% decline in sales in 2008. The figures were somewhat stronger when accounting for changes in exchange rates.
However, the company warned the current year will be difficult, as the world economic crisis pinches consumer spending.
“Expectations for the development of the global economy and its impact on the sporting goods industry in 2009 are currently subject to a high degree of uncertainty,” the company said in a statement.
“Consequently, the effect global macroeconomic developments could have on the Adidas group’s business outlook is difficult to forecast, especially with regard to the second half of the year.”
