World Cup powers Adidas to strong Q2

Adidas, the world's second biggest sports equipment and clothing maker, raised its earnings per share outlook on Wednesday after raking in strong second-quarter profits thanks to the 2010 World Cup in South Africa.

World Cup powers Adidas to strong Q2

The Bavarian-based group that also owns the US brand Reebok had already said football-related sales should reach €1.5 billion ($1.98 billion) in 2010, which meant overall profit should rise.

“We had an outstanding first half year driven by the FIFA World Cup 2010 and the resurgence of the Reebok brand in North America,” said chief executive Herbert Hainer in a statement released on Wednesday.

“Sales momentum at both Adidas and Reebok accelerated in the second quarter with currency-neutral sales increasing 13 percent and 16 percent respectively.”

Adidas said earnings per share should now increase to between €2.50 and €2.62, compared with a previous estimate of €2.05 to €2.30.

On the basis of the number of free-floating shares, that would give a full-year net profit of between €523 million – €548 million, up from €430 million – €480 million. Adidas sponsored 12 of the 32 teams that competed in the World Cup, including Spain, the new world champion, and Germany, which finished third.

Second-quarter operating profit leapt by 172 percent to €195 million, as other lines also benefited from a global economic rebound and foreign exchange effects.

The group cited in particular a rise in the value of the Russian rouble and a decline in operating overhead spending as factors behind its improved outlook.

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Germany’s Adidas and Puma join Facebook ad boycott over hate speech

German sportswear makers Adidas and Puma said Tuesday they would join a growing advertiser boycott over hate speech against Facebook and Instagram in July, following major consumer companies like Levi's and Coca-Cola.

Germany's Adidas and Puma join Facebook ad boycott over hate speech
Puma's headquarter Herzogenaurach. Photo: DPA

“Puma will join the #StopHateForProfit campaign…throughout July,” a spokeswoman told AFP, citing a social media hashtag organised by social justice activists taken up by some of the companies.

The leaping-cat brand “is part of an overall effort to create positive change and improvement in Facebook's platform by demanding the removal of inaccurate, hostile and harmful conversation,” she added.

While he did not reference the hashtag, a spokesman for Puma's hometown rival Adidas said the company would “develop criteria to develop and maintain a cosmopolitan and safe environment that will apply to ourselves and our partners” during a Facebook ad pause also encompassing US subsidiary Reebok.

“Racism, discrimination and hateful comments should have no place either in our company or in our society,” he added.

Facebook shares clawed back Monday some of the $50 billion in market value they had shed as the advertiser boycott picked up pace last week.

Around 200 companies including giants like Starbucks and Unilever have followed the appeal of civil rights groups like the NAACP and Anti-Defamation League to stage the July boycott.

The movement against online hate speech has picked up steam following George Floyd's May 25th death at the hands of a white policeman in Minneapolis.

READ ALSO: Tens of thousands rally across Germany against racism and police brutality

On Friday, Facebook had said it would ban a “wider category of hateful content” in ads and add tags to posts that are “newsworthy” but violate platform rules — following the lead of Twitter, which has used such labels on tweets from US President Donald Trump.

But experts have highlighted the social network's massive advertiser base of small- and medium-sized companies chasing over 2.6 billion worldwide users, potentially limiting the impact of big-name boycotts.

Adidas has itself been in the sights of the global anti-discrimination movement.

Earlier this month, the three-stripe brand rejected claims by employees that it was not doing enough to combat racism, after its human resources chief last year described such complaints as “noise” only discussed in the US.