Adidas's First Quarter Sales In China Beat Nike Puma

The world's second largest sporting goods company Adidas (Adidas) as Chinese consumers compete to buy Trifolium sports shoes, they are better than their rivals Nike (Nike) in key Chinese markets. Puma (Puma) profits are expected to rise in 2012. In a provisional announcement to update investors' expectations and India's market problems, Adidas said sales in the first quarter of the Chinese market surged by 26%, making it the biggest winner in sales and profit forecasts.

Its competitor, Zhou Biao, said on the week that it failed to achieve the expected first quarter earnings and described its sales performance in the Chinese market in a "flat expression", while European shoppers abstinent their consumption and were cautious.

World No. 1 sporting goods company Nike Prior to the announcement, its sales in China increased by 21% in the third quarter ended February.

Mark Josephson, an analyst at market research firm Sylvia Quant, said Adidas's sales growth in the Chinese market showed that competitors' problems in the region were partly due to Adidas's competitiveness.

Adidas said the company expects sales to increase by about 10% in 2012, up from 5% to 9% previously forecast, while net revenue will grow 12% to 17% compared to the previous guidance target.

The adjustment of the prospects and the strong sales results have suppressed the news of the improper accounts handling of Reebok India. For the Reebok India company, Adidas has admitted that the management has been adjusted, and the experienced managers ClausHeckerott and FredericSerrant who have worked in Adidas for 14 years have been introduced. Adidas said the situation could lead to a 125 million euro impact on previous gains, while the cost of further reconstruction of Reebok India in 2012 could be as high as 70 million euros.

The company added that the new outlook for 2012 covered planning related to Reebok India.

Herbert Hayne, chief executive of Adidas, said: "although the situation in India is regrettable, it allows us to speed up the plan to improve the bad part of our business." Although India is not one of Adidas's top 10 markets, Reebok has a large market share in cricket and occupies a major market share in the country.

Adidas released a complete first quarter report, saying its first quarter sales amounted to 3 billion 800 million euros, operating profit of 409 million euros, and net income of 289 million euros.

According to Thomsen Reuters, one of the world's three largest providers of information, analysts had expected Adidas's reported sales of 3 billion 590 million euros, operating profit of 332 million euros, and net income of 232 million euros.