World No.2 sporting goods maker Adidas said that a summer of sport was boosting demand for its three-stripe products, helping it stay a step ahead of rivals and avoid the worst of a slowdown in sales growth in China and Europe.
"If the world collapses it might hit us as well, but I do believe, without sounding too confident, that we are much better than our competitors," Chief Executive Herbert Hainer said on Thursday, after forecasting 2012 earnings towards the top of its target range.
Shares in the German firm, a sponsor of the London 2012 Olympic Games and the Euro 2012 soccer tournament, were down 1.6% at 1315 GMT, in line with a blue-chip DAX index that was dragged lower after comments from ECB president Mario Draghi.
Commerzbank analyst Andreas Riemann said investors should cash in on profits now from Adidas shares, which have gained 21% this year, as slowing earnings momentum could soon catch up with high consensus expectations for Adidas.
Adidas said sales growth in China, where it and rivals are battling with local companies to win over the country's brand-hungry consumers, slowed to 13% in the second quarter from 26% in the first.
Sales in debt-ridden western Europe were up just 5%, compared with 7% in the first quarter.
Hainer said he believed Adidas had gained market share in key markets such as China, the United States and the UK from rivals, who have reported slower growth figures, or even declines in Europe in the case of Puma.
Local rival Puma warned on profit last month as shoppers in Europe, its biggest market, held back on spending, while world No.1 Nike missed quarterly estimates and said orders for future delivery were slowing.
"Adidas is clearly outperforming Nike and Puma this year," DZ Bank analyst Herbert Sturm said.
REEBOK STRATEGY
Adidas also said on Thursday it was not giving up on its struggling Reebok brand after sales slumped 26% in the second quarter due to "commercial irregularities" at its Indian arm and the loss of a major American football contract.
Hainer said Reebok would return to growth next year, helped by new product launches and a strategy to turn it into a brand focused solely on fitness products.
The group said it was working towards a "fresh start" in 2013 for Reebok India and had filed criminal charges against its former management there. Adidas said in April the reorganisation would cost up to 70 million euros and result in the closure of stores.
Adidas, whose shares hit an all-time high in May, said it now expects earnings per share in 2012 of 3.68-3.75 euros ($4.53-$4.61), compared with a previous target for 3.58-3.75 euros. It kept a forecast for overall sales growth of almost 10%.
The group reported second-quarter sales up 7% at constant currency rates to 3.52 billion euros and operating profit of 256 million, slightly above analysts' forecasts for 3.5 billion and 243 million, respectively.
