Adidas forecasts sales rise

Adidas Group raised its annual earnings and sales forecast for 2005, due to rising demands in the U.S. and strong orders for new pr oducts in the run-up to next year's soccer World Cup in Germany. The company expects that net income for Adidas will grow at least 20 percent in 2005. For the third quarter, net income, rose 20.3 percent to 215 million euros, beating analysts' estimates. "Adidas is moving with great vigor toward the World Cup," said Herbert Hainer, chief executive officer of Adidas, during a conference call with analysts Thursday. "We are ready to take on the next big challenge, the integration of the Reebok group."

Adidas, the second-largest activewear firm in the world after Nike, is in the pr ocess of purchasing Reebok International Ltd. to double its share of the U.S. market and narrow the gap with its biggest competitor. Despite Reebok's slumping sales in the third quarter and decreasing orders from retailers such as Foot Locker, Hainer ex pr essed confidence that the Reebok acquisition would boost earnings.

"Clearly, there are challenges that Reebok will solve, but these were not unknown when we made our offer in August and we remain fully confident in the synergies and financial targets," Hainer said. The deal should be concluded in the first half of 2006, following European antitrust ap proval. By region, European sales were flat due to the general economic malaise. The region "continues to be the biggest challenge," Hainer said. Still, he expects demand to gain momentum into next year especially as World Cup pr oducts enter the market. Team jerseys from France , Germany , Japan and Argentina , for example, are expected to hit stores this month. Apart from World Cup pr oducts, Hainer said demand for running shoes and apparel is on the rebound in Europe ."