Adidas AG expects to increase sales and profit in 2011 as China rebounds and Russia becomes its top European market, Chief Executive Officer Herbert Hainer told Bloomberg News
Sales of new products such as Reebok ZigTech will also help boost sales next year, helping compensate for the lack of a World Cup.
“You will see that in 2011 we will grow again,” said Hainer, referring to both revenue and earnings. “I don't see anything, honestly, that should hinder us from growing in 2011 and the years ahead.”
Sales this year will exceed 11 billion euros ($14.4 billion), driven by record soccer sales after this year's World Cup. Adidas sold more than twice as many jerseys as at the last tournament four years ago, including 200,000 Spanish jerseys in the weeks after the team became world champion.
Sales in China returned to growth this quarter after declining 10 percent last year and 16 percent in the first half, Hainer said. The company has been able to raise prices in the world's most populous country after discount sales of inventory dating back to the Beijing Olympics in 2008 ended.
That growth “will continue in the fourth quarter and 2011,” Hainer said. “My confidence is very high.”
Regarding 2011, Hainer said Adidas' biggest challenge will be to secure sufficient manufacturing capacity to support growth. Adidas is increasing production sites in Laos, Vietnam and Cambodia.
