Herbert Hainer, chairman and CEO of adidas-Salomon, said in an interview with Reuters last week that he expects sales in Europe to increase in single-digits for 2005 despite a dip in order backlog reported at the end of third quarter. Brand adidas generates about half its sales in Europe.
“We expect sales in Europe to rise only slightly in the first half, but see stronger growth in the second half (adjusted for currency effects),” he told Reuters.
The move may be a tough one as the company, along with cross-town rival Puma, attempts to anniversary a year that saw the Olympics in Athens and the Euro 2004 Football championships in Portugal. The next big event in Europe is the 2006 World Cup, which should give the brand a major marketing platform on its home turf in Germany.
Hainer again reiterated expectations that 2005 currency-neutral sales growth would be in the 10% to 15% range and also hinted at double-digit gains for 2006. North America is expected to grow 5% to 10% in 2005 in currency-neutral terms and Asia/Pacific is seen increasing in double-digits for the year.
He then went on to make the strange comment that the “price war with Nike is over” in the U.S.
He also said that the company would propose raising its dividend for 2004 “significantly”.
In other adidas news, Michel Perraudin, a member of the adidas-Salomon Executive Board that has been responsible for Global Human Resources, Key Projects and Corporate Services, will leave the company to pursue his responsibilities as president of the World Federation of the Sporting Goods Industry. He was elected to a three-year term in July 2004, succeeding previous president, Masato Mizuno, Chairman of Mizuno Corp.
Perraudin is expected to remain closely linked with the adidas-Salomon Group as a consultant and will continue to work on special projects.
