Adidas eyes Euro 2016 for sales boost

German sport-shoe maker Adidas forecast sales may rise at the fastest pace in five years as consumers spend more ahead of the Euro 2016 soccer tournament, setting up its incoming chief for a potentially better period than the company’s recent past.

Adidas forecast 10% to 12% growth in both local-currency revenue and adjusted net income this year, pinning down its targets less than a month after raising its outlook. Gross margin will narrow as much as 1 percentage point due to higher purchasing costs in Asia, Adidas also said.

The buoyant sporting-goods market and ability to raise prices are helping Adidas surmount higher costs and provide incoming chief executive Kasper Rorsted with a stronger foundation than the company has had in years. Sales of trainers and clothing will be helped by the European championships in June and July, Adidas said.