Adidas Q3 Net Income Falls 30 Pct

GEORGE FREY

FRANKFURT (AP) — German sportswear company Adidas AG said Wednesday its net income fell 30 percent in the third quarter as it saw sales decline, especially at its sport performance division.

Adidas, based in Herzogenaurach, said net income fell to €213 million ($315 million) in the July-September period from €302 million in the third quarter of 2008.

Revenue for the period fell 7 percent to €2.9 billion from €3.1 billion.

Adidas, which also owns the Reebok brand, said it expected sales to decline at a low to mid-single-digit rate in 2009, assuming unchanged currency values, due to weaker consumer confidence and rising unemployment in many major markets.

The company also said net income and earnings per share for the full year would decline, but expected them to rise during the second half of the year compared with the first half.

Adidas said earnings would be affected by higher sourcing costs for materials and higher labor costs as well as currency effects, particularly the depreciation of the Russian ruble.