German sportswear giant Adidas has raised its profit forecast for the year as it reported an 18% rise in net profits for its second quarter.
Net profits for the three months to June 30 rose 18% to €165m (£130m) aided by a 14.8% increase in group revenues to €3.52bn (£2.78bn). Revenues grew 7% on a currency-neutral basis, driven by double-digit sales increases in retail.
“We have delivered another winning financial performance in the first half of 2012,” said Herbert Hainer, Adidas Group chief executive. “Our clear victory in the summer of football, our increased operating margin and our excellent inventory management show we have the right formula to preserve and sustain our positive earnings and cash flow trajectory.“
Adidas now expects net profits for 2012 to increase by between 15% and 17% to between €770m (£608m) or €785m (£620m), whereas it had previously forecast an increase of between 12% to 17%.
Hainer added: “Right at this very moment, we are capitalising on our involvement in the London Olympic Games, an event that echoes the shared values of our group: performance, passion, integrity and diversity. I have no doubt that this excellent event in London will inspire a generation to get into sport and provide further impetus to the global mega-trend towards sport and healthier living.”