Adidas stays on track as profits rise

Sportswear maker Adidas-Salomon today revealed better-than-expected pre-tax profit growth in the third quarter of the year.

Sportswear maker Adidas-Salomon today revealed better-than-expected pre-tax profit growth in the third quarter of the year.

The footwear business was the driver of sales growth and Asia was the fastest-expanding market.

Known for its three-striped sports shoes, Adidas said pre-tax profit stood at €220 million as sales rose 4 per cent to €1.9 billion.

Adidas makes about a third of its sales in North America and has a long-standing strategy to beef up its slice of the world's biggest footwear market to 20 per cent.

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With average prices of around $80-90 versus around $120 for a pair of Nike shoes, many analysts say Adidas is well positioned in the United States where consumers are increasingly price-sensitive.

Adidas shares have lost 5 per cent since the start of the year, outperforming Nike stock which has shed more than 10 per cent over the same period.

Adidas's German rival, Puma, unveiled a 72.7 per cent leap in pre-tax profit yesterday as it made the most of its niche in the booming sports-lifestyle market.