Adidas Plays Down Short-term Benefits of Olympics

 for more2010.
BEIJING (Reuters) - Adidas AG, the world's No. 2Adidas's sales in China jumped 60 percent in the first
sports goods maker, on Thursday played down thesix months from a year earlier, leaving China on
short-term business benefits of the Olympic Gamescourse to become its second-largest market by the
but said China would become its second-largestend of this year, Hainer said.
market by the end of the year.Â
ÂThe group's expansion would be driven not just by
Adidas posted forecast-beating results on Tuesdaythe Adidas brand but also by Reebok, which Adidas
for the latest quarter, bolstered by the Euro 2008bought in 2005.
soccer championship."We will open approximately 1,000 Reebok stores
Âhere by the end of 2010, and this will definitely fuel
But Adidas Chairman and Chief Executive Herbertour growth," Hainer said. Currently there are about
Hainer said the Beijing Games, which open on Friday,800 Reebok outlets in China.
would be different.Â
ÂAdidas said earlier this year that it expected to
"The European championship immediately gives youincrease the number of its own-name stores in China
revenues from the balls, from the boots, et cetera,to 6,300 by 2010 from over 4,000 now.
whereas the Olympic Games gives youÂ
more or less a mid- and long-termHainer said Adidas would keep investing in China, but
perception and loyalty to the brand by thethe proportion of shoes made there would drop
consumer," Hainer told reporters.slightly "from over 50 percent to around 50 percent"
Âas the firm expanded production in Cambodia,
Adidas is the official sportswear partner of theVietnam and eastern Europe.
Games and official partner of the Chinese OlympicÂ
Committee.A number of multinational companies are shifting
Âsome production out of China, mainly due to rising
Hainer said the company expected to record $1 billionlabor costs, but Hainer said Adidas had no plan to
in sales in China this year and restated its goal ofshut any factories in China.
reaching 1 billion euros ($1.55 billion) in revenue by