Frankfurt : Adidas, the world's second-biggest sporting-goods maker, jumped to the highest since the company's 1995 initial public offering after increasing its profit forecast as first-quarter earnings beat estimates.
The company reported a 38 per cent gain in first-quarter net income to €289 million (Dh1.40 billion), in a statement brought forward from May 3.
Adidas now forecasts 12 per cent to 17 per cent growth in full-year profit, compared with a previous prediction of 10 per cent to 15 per cent.
Profit beat the €230.6-million average estimate of five analysts in a Bloomberg survey, fuelled by higher golf sales and growth in China, Adidas said.
Irregularities
The Herzogenaurach, Germany-based company said it discovered irregularities at the Indian arm of its Reebok unit, which it estimates will cost as much as €125 million. It gave no further details of the irregularities.
"I am still nervous about India, but the profit numbers and the guidance are very strong," said Mark Josefson, an analyst at Silvia Quandt Research GmbH in Frankfurt.
Adidas jumped as much as 6.6 per cent in Frankfurt trading, the steepest intraday advance since September 7. The shares were up 4.8 per cent at €62.66 in midmorning.
First-quarter sales in Asia rose 26 per cent on a currency-neutral basis, compared with a 7 per cent increase in western Europe, Adidas said. In European emerging-markets and North America, sales climbed 15 per cent and 11 per cent, respectively. Revenue at Adidas' TaylorMade golf brand jumped 32 per cent.
