Wednesday, 20 July 2011 at 10:43, Reuters, Frankfurt
Adidas has raised its sales outlook twice this year and sees 2011 sales growing by a high single-digit percentage. (REUTERS)
Sportswear group Adidas 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 per cent on Tuesday as traders cited concerns that the company's second quarter had been weak.
They pared losses after the comments from Hainer, closing down 3 per cent at €53.58. Local rival Puma closed down 1.3 per cent.
Adidas shares have been trading at record highs this year, reaching €57.62 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 August 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 per cent rise in sales to €12.98 billion ($18.43 billion) for 2011, according to Thomson Reuters I/B/E/S.
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 protect margins.
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