Thursday, October 13, 2005

World Cup products to boost Addidas sales

The world's second-biggest sporting goods supplier after Nike, Germany's Adidas, expects its net income to grow by 20 percent this year. The brand, known for its three-striped sports shoes, is shortly to roll out the first World Cup 2006 products propelling football sales, which make up almost 20 percent of the group's turnover, to more than £680 million in 2006 from £617 million in 2004.

"Our momentum is clearly building as World Cup products start to hit stores. Interest is already building," Chief executive Herbert Hainer told the Edinburgh Evening News. Earlier this year, the company extended its 35-year long sponsorship partnership with football's governing body FIFA for the World Cup tournaments in 2010 and 2014 in a deal worth some £190 million.

The importance of brand names in the sporting market was also shown yesterday when Britain's biggest sportswear chain JJB Sports, unveiling its latest first-half numbers, confirmed that the Adidas, together with Nike, accounted for almost 50 percent of the chain's turnover.

See also: Adidas Reebok to challenge Nike in global market (3 Aug)

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