Adidas AG, which is currently the second-largest sporting-goods manufacturer, announced today that it had managed to reduce its net loss in 2013 and increased its dividend. The companys profit for the fourth quarter of 2013 beat analysts estimates. The company also revealed that it expects higher sales in 2014, which would be “significantly impacted” by the great fourth-quarter results, as well as by gains from important sporting events.
Adidas AG made an official statement today, forecasting a 2014 profit between 830 million euros (1.14 billion dollars) and 930 million euros. The company posted a forth-quarter net loss estimated to 10 million euros (13.7 million dollars), which is considerably less than the net loss posted by the company during the same period in 2012, which amounted to 272 million euros.
The operating profit of Adidas AG for the fourth quarter of 2013 was estimated to 45 million euros in comparison to the 239-million-euro loss, which was announced for 2012s fourth quarter. The group sales of the company rose by 3.3% and reached 3.48 billion euros.
Herbert Hainer, who is the Chief Executive Officer of Adidas AG said in the companys statement, which was cited by the Wall Street Journal: “Currency headwinds had a significant negative impact on our results in euro terms and this is also expected to continue in 2014.”
Some large sporting events such as the World Cup is also expected to boost the sales of sportswear and equipment makers due to the fact most sports fans increase their demand for cleats, jerseys and other equipment during such events. Over the last several years, the company has been more focused on jerseys and cleats branded with some sports stars such as Lionel Messi, who is a player of FC Barcelona and Gareth Bale, who is a player of Real Mardid.
Adidas AG is also facing the competition of Nike Inc. and Puma SE, which are considered as the companys most serious rivals. In February 2014 Puma SE announced that its 2013 earnings decreased, but it forecast a rapid recovery.
Adidas AGs shares were down 0.35% in Frankfurt by 9:27 GMT to trade at 83.11 euros, having fallen as much as 3.5% earlier in the session, valuing the company at 17.39 billion euros.
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