Adidas reports good news

The German sportswear concern Adidas-Salomon has reported record 2004 earnings, with sales increases across the board. Based on preliminary figures, sales increased by 7% in currency-neutral terms to EUR6.478 million (GBP 4.62 million). Sales in euros climbed by 3%.

The group's gross margin climbed to its highest level ever at 47.2%, compared with 44.9% during the same period the year before. The numbers reflect a better product mix, a stronger euro and the growth of the company's own retail operations.

The group's net income rose by 21% to EUR314 million, as opposed to EUR260 million in 2003. Adidas attributed its strong performance to its capacity to "deliver significant operating margin improvements". The company aims to increase net income by 10-15% throughout 2005 and has predicted double-digit growth within its Asian operations for the year.