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Adidas profit up on cheaper supply costs

Adidas, the world second largest sporting goods maker, behind Nike Inc., cited the group strong operating margin improvement and lower supply costs. Additionally, the group tax rate decreased by 0.4 percentage points to 32 per cent in the first quarter compared with 32.4 percent in the first quarter a year ago.

Sales rose 3.1 per cent to 2.62 billion euros ($4.05 billion) in the period compared with 2.54 billion euros in the first quarter of 2007.

Adidas said sales at Adidas increased 14 per cent on a currency neutral basis, while TaylorMade Adidas Golf sales increased 17 per cent. Meanwhile, Reebok sales declined six per cent in the first quarter.

are off to a fast start to 2008, said Herbert Hainer, the company chief executive in a statement. and TaylorMade Adidas Golf were our growth engines. As a group, we are stronger than ever before. Most importantly, group profitability has improved substantially. The company said it should see group sales increasing at a high single digit rate on a currency neutral basis, driven by growth in all brands.

Adidas brand sales are expected to grow at a high single digit currency neutral rate for the year, while Reebok is expected to grow at a mid to high single digit rate, the company said.

TaylorMade Adidas Golf sales are forecast to grow at a mid single digit rate. The company cheap nike free said its gross margin is expected to increase modestly to a range of 47.5 per cent to 48 per cent driven by improvements in all three brand segments. Operating margin for the Adidas group is projected to increase to at least 9.5 per cent, the company said.

Uwe Weinreich, an analyst at UniCredit/HVB in Munich said the company first quarter performance was and above expectations. He said despite slowing momentum on some fronts, the company confirmed its outlook and expressed future optimism. confirm our Buy Rating and our target price of 48.75, euros Weinreich said.

Order backlogs for the Adidas brand at the end of the first quarter increased 13 per cent compared with Men Nike Flyknit Trainer Anti-Fur last year.

2008 we will reach new heights on both the top and bottom line, Hainer said. summer of excitement is ahead of us. a challenging market environment, Men Nike Free 3.0 V3 we are optimistic we will achieve all our targets.