In an interview last week with Bloomberg News, Adidas Group CEO Herbert Hainer estimated higher sales and profits in 2011, citing a rebound in China and Russia emerging as its top European market. Expected gains from new products such as Reebok ZigTech are also expected to compensate for the lack of a World Cup next year.
“You will see that in 2011 we will grow again,” said Hainer. “I don't see anything, honestly, that should hinder us from growing in 2011 and the years ahead.”
Sales in China are expected to return to growth this quarter after declining 10% in 2009 and 16% in the first half, Hainer said. The company has been able to raise prices in China after discount sales of inventory dating back to the Beijing Olympics in 2008 ended. He also said Adidas regained its number two share position in China after seeing Li Ning temporarily take the spot.
In response to rising production costs in China, Hainer said Adidas is also increasing production sites in Laos, Vietnam and Cambodia.
He said Adidas could buy a company with sales of a few hundred million euros but indicated that acquisitions are not an integral part of the company's growth strategy.
