* Tells Reuters confident of strong performance
* Shares pare losses, close down 3 percent
(Adds background, updates share price)
By Victoria Bryan
FRANKFURT, July 19 Sportswear group Adidas
(ADSGn.DE) is confident of meeting its guidance for 2011 its
chief executive told Reuters, in spite of concerns that rising
material costs could affect the sector.
"I am confident we will deliver another year of strong
financial performance in line with the guidance we have provided
for the full year 2011," Herbert Hainer said in a statement
emailed to Reuters on Tuesday.
Shares in Adidas had fallen more than 4 percent on Tuesday
as traders cited concerns that the company's second quarter had
They pared losses after the comments from Hainer, closing
down 3 percent at 53.58 euros. Local rival Puma closed
down 1.3 percent.
Adidas shares have been trading at record highs this year,
reaching 57.62 euros on Monday.
Hainer said the movement in the group's share price over the
last two days was "purely driven by speculation".
Adidas is due to report second-quarter results on Aug 4. It
has raised its sales outlook twice this year and sees 2011 sales
growing by a high single-digit percentage.
Analysts are looking for an 8 percent rise in sales to 12.98
billion euros ($18.43 billion) for 2011, according to Thomson
However, rising raw material costs and sales lost in Japan,
one of its most profitable markets, following the March 11
earthquake and tsunami mean its profit margin will likely come
in flat, Adidas has said.
Chinese rival Li Ning flagged high raw material
costs this month, saying they would hurt profit margins.
Like Adidas, market leader Nike and Puma have all
announced price rises to negate the impact of higher costs and
(Reporting by Victoria Bryan; Editing by David Hulmes)