Sports giant Adidas said Thursday that it expects revenues and profits this year to rise by 10-12 percent as the current consumer boom in Germany continues.
“Group sales are expected to increase at a rate between 10 and 12 percent on a currency-neutral basis in 2016,” the German sportswear and equipment manufacturer said in a statement.
“The positive sales development will be supported by rising consumer spending, providing a positive backdrop for the continued growth and expansion of the sporting goods industry.”
The upward sales trend would also be “favourably impacted by the positive effects from major sporting events, including the UEFA EURO 2016” and the Olympic Games in Rio de Janeiro.
In terms of earnings, net profit was also projected to increase at a rate of between 10 and 12 percent “to around 800 million euros ($870 million) compared to the 2015 level of 720 million euros.”
While Adidas, like rival Nike, was expecting to receive a boost from the UEFA soccer championships and the Rio Olympics, purchasing and labour costs are also increasing.Â
Like other sports good manufacturers, Adidas has production sites in Asia and conduct transactions in dollars, so they are feeling the pinch of the rise in the value of the dollar against the euro.Â
Last month, Adidas said it performed better than expected in 2015 with sales rising by 16 percent to 16.9 billion euros and net profit up 12 percent.Â
Its current chief executive Herbert Hainer is handing over the reins to Danish-born Kasper Rorsted, currently head of the consumer chemicals giant Henkel.Â
“2016 will be another successful stage in our race to becoming the best sports company in the world,” said Hainer. Â –Â Agence France-Presse
