Sales, profits sprint ahead at Adidas

(Sharecast News) - Shares in Adidas raced ahead on Wednesday, after the German sportswear brand saw first-quarter sales jump on the back of renewed demand. Net sales strengthened 14% on a constant currency basis, at €6.6bn, following robust sales across all regions, including a 6% uplift to €2.1bn in Europe, Adidas's biggest market.

Footwear sales were 4% higher at €3.7bn, while apparel soared 31% to €2.4bn.

Group operating profits rose 16% to €705m.

As at 1300 BST, the Frankfurt-listed stock was trading 6% higher.

Adidas received a boost this week after Sabastian Sawe wore cutting edge Adidas trainers when he became the first man to run a sub two-hour marathon on Sunday; Tigist Assefa, who was also wearing the 97-gramme Adizero Adios Pro Evo at the London Marathon, set a new women's world record. Shares in the firm jumped in response when markets opened on Monday.

Chief executive Bjorn Gulden said the shoe had played a role in "creating history" and that there was "much more to come", including the football World Cup in the summer.

However, he also sounded a note of caution. He said: "The general retail environment is currently very volatile and heavily discounted in many markets, especially in lifestyle footwear. The discipline of not overselling into retailers is therefore currently crucial.

"We do, of course, hope the environment stabilises and that discounts will normalise, but this is unfortunately not in our control."