Adidas eyes expansion into smaller China cities

FRANKFURT Thu Nov 8, 2012 10:06am EST

FRANKFURT Nov 8 (Reuters) - Adidas will expand into smaller Chinese cities in 2013, even though competitors are struggling and the economy there seems to be cooling.

"We will continue to grow in China," Chief Executive Herbert Hainer told analysts after the group reported third-quarter results, adding that the group would monitor market development closely in the lower tier cities.

Chief Financial Officer Robin Stalker also said the group would use its cash to pay down debt, rather than for major acquisitions or share buybacks and that investors could look forward to dividend increases in the future. (Reporting by Victoria Bryan)