FRANKFURT • Adidas AG got a boost from the World Cup even though some of the traditional powerhouses it sponsors flamed out early in the tournament.
Teams supported by rival Nike Inc — including winner France and runner-up Croatia — dominated the World Cup. But the German sportswear company still sold record numbers of jerseys linked to the event.
Adidas yesterday posted second-quarter (2Q) revenue and profit that beat analyst expectations, fuelling a 10% rise in the shares, the biggest gain since March.
The company’s World Cup shirt sales topped the eight million sold in connection with the tournament in Brazil four years ago, CEO Kasper Rorsted said in an interview with CNBC. That’s even though Adidas-sponsored Germany, Spain and Argentina all exited the tournament early.
The Herzogenaurach, Germany-based company withstood a shift in off-the-field fashion away from minimalist classic shoes like the Stan Smith sneaker and toward so-called “dad shoes” — chunkier versions of designs from the 1980s and 1990s. German competitor Puma SE last month said the change hurt its sales in the first half of the year.
“The consumer is becoming more fickle,” Rorsted said on CNBC. “That’s an opportunity, but also a threat.”
Adidas said revenue adjusted for currency swings rose 10% to €5.26 billion (RM24.83 billion) in 2Q, driven by a 12% gain at its namesake shoe brand. — Bloomberg