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Can Adidas keep its eye on the ball?

Thursday, August 04, 2016 - 01:24

Adidas says it's confident it can keep growing fast and improve profitability even though it's just reported its highest second quarter sales growth in a decade. As Laura Frykberg reports, fashion is helping the German sportswear group.

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Adidas is kicking the competition. Shares in the German sports giant have soared 61 percent this year. Making it one of the top performing company's in the country. Second quarter sales have also grown at their fastest pace in a decade. A play for fashion over football, perhaps, behind the game plan. SOUNDBITE (English) SENIOR FX STRATEGIST, RABOBANK, JANE FOLEY, SAYING: "They've seen their profits rise something like four times bigger than expected in the second quarter. And right now while many analysts are suggesting that this could be linked to the European football perhaps, I think there is perhaps something more than that. I have a teenage daughter and I know that Adidas has suddenly become extremely popular with that age group. So right now there is a big fashion item and Adidas has become an extremely popular brand." Case in point: The popularity of its Adidas' retro superstars , and Yeezy Boost sneakers, designed by rapped Kanye West. But Adidas insists sport is still a major part of the company. Despite selling its golf business - like rival Nike - in just 24 hours, it sold 16,000 pairs of its latest running shoes in the U.S. As more people switch to faster paced sports.

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Can Adidas keep its eye on the ball?

Thursday, August 04, 2016 - 01:24