Adidas scores rise in income

SECOND-quarter net income rose sharply at Adidas, Europe’s biggest sports-goods maker, as the integration of its Reebok division helped cut costs and increase margins despite nearly flat sales growth.

Sales fell in North America but grew in all other markets in the first half, Adidas said yesterday, adding the European soccer championship and Olympic Games in 2008 would boost revenue and earnings.

Adidas said second-quarter net income rose 27% to €104 million, above the average forecast of €96m in a Reuters poll of 15 analysts.

In euro terms, sales fell 1% to €2.4 billion, narrowly beating an average forecast of €2.37bn.

The company, which sponsors athletes such as David Beckham and Lionel Messi, credited its higher margins — gross margin increased 2.8 percentage points to 47.4% — to cost cuts and synergies from integrating Reebok, which it bought in 2005.