Companies

Adidas forecasts rising sales in China

(Agencies)
Updated: 2010-05-22 13:47

Adidas AG, the world's second-largest sporting-goods maker, expects rising sales in China in the second half as retailers restock depleted inventory, Chief Executive Officer Herbert Hainer said in an interview on Bloomberg Television.

"We are selling six months in advance, so I already have the orders for the third and part of the fourth quarter," Hainer said today. "We definitely will see rising numbers in China in the second half."

Related readings:  Adidas net profit slips on Q4 charges  Struggling Adidas sees long-term growth ahead

Sales in China will "soon" reach 1 billion euros ($1.25 billion), Hainer said this month, repeating a goal he set during the Beijing Summer Olympic Games in 2008. Adidas reported a 10 percent revenue decline in the world's most-populous country in 2009 and a 20 percent drop in the first quarter.

Adidas rose in Frankfurt trading after Hainer's comments. The stock gained 76 cents, or 1.9 percent, to 40.01 euros, the second biggest advance in Germany's benchmark DAX Index.

Adidas, which outfits 12 of the 32 teams playing the soccer World Cup that begins on June 11 in South Africa, still expects record sales of more than 1.3 billion euros, Hainer said.

"This interview confirms our "buy" recommendation on the shares with a target price of 50 euros," BCG Partners in London said in an e-mailed note.

Adidas, based in Herzogenaurach, Germany, is second to Nike Inc in the sporting-goods industry.