Adidas Counting on World Cup to Restore Revenues

10 11 2009

Adidas has had a rough year, but they hope to end on a high note.

The German-based athletic apparel company recently reported a 30% decline in overall income for their third quarter sales.  For the period ended September, adidas earned only $319 million dollars, compared to the $452 million they earned the same period last quarter.

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Adidas: Official Sponsor of FIFA World Cup (http://tinyurl.com/yzatndm)

Though the drop was painful, adidas now believes it can only go up from here.  “Due to a more moderate increase of input costs and positive impetus ahead of the 2010 FIFA World Cup,” said the company in its November 6 earnings report, “group profitability will be significantly better in the second half compared to the first half of the year.”

The 2010 Cup doesn’t begin for another 211 days, but adidas anticipates a swell of merchandise sales in preparation for the professional soccer tournament.  As countries gear up for the most-watched international sports events, an extensive range of World Cup products will offered by adidas all over the world.

The company also hopes that their soccer ties will continue to impact sales post-tournament as well.  In addition to being the official sponsor of nearly a dozen teams, adidas is also an official sponsor of FIFA and the official sponsor of the 2010 Cup.  This means that the retailer’s logo will appear on everything from match balls, to referee and ball boy uniforms.

According to Bloomberg, “adidas is aiming to beat record soccer-related sales of 1.3 billion euros ($1.92 billion) in 2008, when the last European Championship was held,” and they are expecting positive growth for their soccer business in 201o.   

Since adidas is currently the number one soccer merchandise provider world-wide, the 2o1o Cup could not come at a better time for the struggling company.

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10 11 2009
Tweets that mention Adidas Counting on World Cup to Restore Revenues « gold and the game -- Topsy.com

[…] This post was mentioned on Twitter by Lauren Hatch, NewsLine. NewsLine said: Adidas Banking on World Cup to Restore Revenues « gold and the game: “Due to a more moderate increase of input .. http://bit.ly/LPG8t […]

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