Adidas raises outlook after strong quarter

Sporting goods maker Adidas raised its 2005 outlook today after third-quarter net income rose by nearly a third.

Sporting goods maker Adidas raised its 2005 outlook today after third-quarter net income rose by nearly a third.

The world's second largest sporting goods company after Nike predicted further growth and forecast a double-digit percentage leap in earnings as sales for soccer products are expected to rise ahead of next year's World Cup in the company's home market of Germany.

Adidas also raised its full-year sales outlook and said it now expected currency-neutral sales to grow at a high single-digit percentage rate.

The company, which is buying US rival Reebok to take on Nike in the United States, said net income rose by 28 per cent from a year ago to €209 million -

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when adjusted for the sale of its ailing Salomon unit.

Adidas has said the Reebok acquisition will help it to chase Nike in its home turf, but some investors are worried the firm is tackling too big a job ahead of the key World Cup.

The tournament is a major event for the sporting goods industry, which spends millions of euros to sponsor the best teams and to market shirts and footwear worn by star players.