Adidas reported third-quarter profit that beat analysts’ reduced estimates as the company made strides in soccer and running sales, helping offset declining revenue at its golf business.
Net income fell to 282 million euros ($353 million), the Herzogenaurach, Germany-based sporting-goods maker said in a statement today, compared with the average 268.4 million-euro estimate of analysts surveyed by Bloomberg.
Chief Executive Officer Herbert Hainer is under pressure to turn the company around after earlier this year scrapping sales and profit targets for 2015 and abandoning the 2014 earnings goal as well. Nike is taking share in the U.S. and encroaching on Adidas’s home turf in Europe, while the market for golf equipment is slumping.
“We have been aggressively addressing our key challenges: restructuring and stabilizing TaylorMade-adidas golf, adjusting our business in Russia/CIS and intensifying our efforts to revive momentum and growth in the U.S.,” Hainer said in the statement.
Sales next year are forecast to increase at a mid-single-digit rate, while net income will grow at a higher rate than group sales, the company said. Hainer will present a new strategic plan in March.
Adidas shares have dropped 39 percent this year, making them the worst-performing member of the 30-stock DAX Index. The shares gained 0.9 percent to 56.76 euros yesterday.