Adidas Group Improves Overall Goal In The Future

German sportswear and equipment manufacturers

The first quarter profit on Monday exceeded expectations, and the company raised its annual performance target, but warned its Reebok India's wrongdoing could have an impact on its performance.

Adidas said its net profit rose 38% to 289 million euros in the first quarter, and its growth was mainly benefited from the growth and customization of the Chinese and Japanese markets.

Selling, cost and tax rate reduction.

The average estimate of analysts surveyed by Dow Jones newswires was US $237 million.

In the first quarter, Adidas's operating profit increased by 39% to 409 million euros. If the exchange rate was fixed, the revenue grew by 14% to 3 billion 800 million euros, and the market was expected to be 3 billion 640 million euros.

Adidas is the second largest sportswear manufacturer in the world, behind Nike.

The company has raised its performance target and expects net profit growth of 12% to 17% in 2012, after its expected growth of 10% to 15%.

According to the constant exchange rate, the company expects sales to grow by 5% to 9%.

The company's gross profit margin fell for the third consecutive quarter, down from 48.4% in the first quarter of 2011 to 47.7%.

The rise in cotton, rubber and labor costs in China has also led to a decline in profits for Adidas's competitors.

Last week, the gross profit margin declined from 52.4% to 51.2% in the first quarter due to rising raw material costs.

Adidas expects London Olympics and European Football Championships to stimulate sales growth.

The company also expects to benefit from fast-growing emerging markets, where rising incomes are stimulating demand for brand products and clothing in emerging markets.

The company also said that the wrongful behavior of Reebok India would bring a pre tax loss of 125 million euros to the company and may cause the company to rereport last year's performance.

In a statement, the company said, "management has assured shareholders that the company has taken measures to protect the interests of the group in the past, now and in the future. The company has appointed a new leader to manage the company in India by the end of March."

Adidas said it would continue to restructure India's performance and change its local business practices, which could result in an extra one-time expenditure of 70 million euros.

Adidas's share price has risen 18% in the past 12 months, while the European Stoxx consumer goods sector rose 0.1% in the same period.

The stock closed at 59.82 euros last Friday.