UPDATE 1-Adidas hikes outlook for year of soccer World Cup

* Adidas ups 2010 net profit f'cast to 430-480 mln eur

* Q1 sales 2.7 bln eur vs I/B/E/S f'cast of 2.6 bln

* Q1 EBIT 260 mln eur vs I/B/E/S f'cast of 173 mln

* Q1 net profit 168 mln eur vs I/B/E/S f'cast of 96 mln eur

* Adidas shares close 0.7 pct higher

(Adds details and background)

FRANKFURT, April 22 (Reuters) - German sporting goods maker Adidas ADSG.DE lifted its full-year profit outlook on Thursday after reporting better-than-expected first-quarter results that benefited from strong demand for toning shoes and soccer gear.

Adidas, the industry's No. 2 behind U.S. bellwether Nike (NKE.N), said it now expects 2010 net profit to rise to between 430 million euros ($578 million) and 480 million euros, having previously aimed for a range of 400 million to 450 million euros.

Adidas is counting on the World Cup in South Africa in June, of which it is a major sponsor, to boost sales. [ID:nLDE62M2GT]

Also on Thursday, Adidas posted preliminary first-quarter earnings before interest and tax (EBIT) of 260 million euros, easily beating analysts' average estimate of 173 million euros, according to Thomson Reuters I/B/E/S.

Sales rose 4 percent to 2.7 billion euros, also above estimates.

"The settlement of a lawsuit and the divestiture of a trademark both contributed a low-double-digit million euro amount each to this development", Adidas said in a statement. It will report more details and final quarterly results on May 4.

Adidas Chief Executive Herbert Hainer had told Reuters in March that the company's Reebok brand was doing well in the United States with its latest innovation -- the EasyTone shoe.

Nike returned to sales and profit growth in the three month to the end of February and forecast higher expected orders around the world after a year of declines, it said in March. [ID:nN17163859]

Adidas shares trade at 18.2 times 12-month forward earnings, at a premium to Nike, which trades at a multiple of 16.7, according to Thomson Reuters StarMine, which weights analyst expectations according to their track record. (Reporting by Eva Kuehnen)