Adidas'S Second Quarter Earnings Rise

Tuesday, the world's second largest sports product producer Adidas (DE:500340) reported a second rise in the second quarter compared with the same period last year.

Meanwhile, the European Football Championship in 2008 promoted sales of sports shoes and helped the company to absorb the adverse effects of rising sales costs. The company also raised its annual profit margin.

The company announced that its second quarter profit rose to 116 million euros (US $181 million) from 104 million euros in the same period last year.

The sporting goods company, which is second only to Nike (Nike) (NKE), reported that sales in the second quarter increased by 5% to 2 billion 520 million euros compared with the same period last year.

The depreciation of the dollar completely offset the increase in sales of TaylorMade-Adidas Golf and Reebok brand products.

Wall Street analysts expected the company to earn 112 million euros in the second quarter and 2 billion 550 million euros in sales.

The reason for the rapid growth of the company's profits is that the product styles have been improved and the cost has been greatly reduced after integrating Reebok into the company.

The company's chief executive, Herbert Hainer, said the company was "very good" in the second quarter, given the bad macro-economic environment.

The impact of bad economic environment is also reflected in the company's orders.

In the second quarter, orders for Adidas brand products increased by only 1%, compared with 5% in the first quarter.

Reebok orders fell by 21%.

At present, the company is still trying to help the US sports shoe department recover.