Adidas Q2 strong despite limping Reebok

Adidas, the second biggest sports equipment maker, posted Tuesday a 12 percent increase in second quarter net profit, although its troubled US unit Reebok saw first-half sales fall by 11 percent.

Adidas Q2 strong despite limping Reebok
Photo: DPA

Adidas recorded a net profit of €116 million ($180 million), in part owing to a reduced tax rate, it said in a statement.

Group sales gained five percent to €2.52 billion from the same period one year earlier, while operating profit was up by 10.3 percent at €208 million. But Reebok’s results continued to lag behind, as the group posted sales of 469 million euros over the three-month period, a drop of 8.8 percent from the second quarter of 2007.

For the first half, Reebok sales lost 11.1 percent to €923 million. The division’s order backlog decreased by 21 percent when adjusted for foreign exchange effectes, which the group said reflected the “short-term impact of strategic initiatives to revitalize the Reebok brand in the USA, the UK and Japan.”

Adidas chief executive Herbert Hainer said in a statement that “we have laid the foundation at Reebok for continued improvement in the second half of the year.” Meanwhile, the parent company was “firmly on track to achieve all of our financial goals for 2008,” Wainer said.

“We even expect to exceed some of our original goals,” he added without elaborating.

Adidas has set a 2008 goal of increasing group sales by more than 10 percent, and said on Tuesday that sales at Reebok were “projected to grow at a mid- to high-single-digit rate in 2008.”

The German group is counting on the European football championship and Beijing Olympic Games to boost its full-year earnings.


German football fans get green light to return to stadiums next season

Bundesliga clubs and other German sports venues will be allowed to welcome up to 25,000 spectators from next month, the city of Berlin said Tuesday after a meeting of officials from Germany's 16 states.

German football fans get green light to return to stadiums next season
Germany fans at the recent Euro 2020 match in London. Photo: picture alliance/dpa | Christian Charisius

Most matches in Germany’s top football league were played behind closed doors last season – so-called Geisterspiele or ghost games – because of the Covid-19 virus.

The new Bundesliga season starts on August 13th and with infection rates having fallen sharply, sports stadiums could be at 50 percent capacity, with the total number per match or event capped at 25,000.

The only exception is reigning Bundesliga champions Bayern Munich, where up to 20,000 fans will be allowed into home games at the 75,000-capacity Allianz Arena because officials in Bavaria are allowing only 35 percent of capacity.

The new rules apply until September 11 and amid concerns in Germany about the Delta variant of the coronavirus, incidence rates must not exceed 35 new infections per 100,000 people over the previous seven days.

READ ALSO: German states call for uniform Covid rules at big events

If that happens, and “the infection cannot be clearly contained”, a maximum of 5,000 spectators will be allowed into sports events, German officials warned.

Only fans who can prove they are vaccinated or present a negative test will be allowed into stadiums and hygiene rules must be followed.

An easing of the regulations meant crowds of around 14,000 were allowed to attend Euro 2020 matches at Munich’s Allianz Arena over the last three weeks, but fans were largely kept out of German league games last season.