German sportswear brand Adidas AG said Thursday it expected sales and profits to register double-digit growth in 2016, boosted by higher spending on sport shoes and apparel ahead of the Euro 2016 soccer tournament to be held in France in June and July. The company also reported a 12 percent jump in fourth-quarter revenue on a constant currency basis, helped by higher demand for its products in Western European countries, China and North America.
Adidas, which had already signaled an upbeat year ahead in a preliminary 2015 results statement published in February, said it would recommend an increase in its dividend to 1.6 pounds ($2.25) at its Annual General Meeting in a statement Thursday.
“Our 2015 performance is a picture-perfect example of a successful comeback in sport. As a group, today we are stronger and in better shape than ever before,” said Adidas Group CEO Herbert Hainer.
The company had come under pressure from investors for losing ground to larger rival Nike Inc. in the North American and Chinese markets over the past few years.
For 2016, Adidas said it expected sales and net income to both increase between 10 percent and 12 percent, excluding the effects of foreign exchange fluctuations. The company cited rising customer spending, increased marketing and upcoming sporting events for the positive outlook. The company also said it would protect its profitability against the rising costs of production in Asia by raising prices of its products this year.
"Our order books are full across all major performance and lifestyle categories. And our brands are set to shine at this year's major sporting events,” Hainer said in a statement.
For the quarter, the company reported sales of 4.17 billion euros ($4.53 billion) compared to average analyst forecasts of sales of 4.15 billion euros ($4.51 billion), according to Reuters.
On Wednesday, the company announced that it planned to rope in Nassef Sawiris, Egypt’s richest man, to its supervisory board as it expanded the Group’s governing body from 12 members to 16 members. Sawiris’ NNS Holding, which owns 6 percent of the voting rights in Adidas, is known for actively pushing for reforms in the companies in which it owns stake.