Herbert Hainer, adidas group chairman and CEO, increased the medium-term sales guidance and earnings outlook for 2007.
The group now expects to post high-single-digit sales growth for each of the next three years versus a previous guidance of mid-to-high single digit revenue growth. Additionally, the Group said net income would increase by double-digit rates for each of the next three years, including by at least 20 per cent in 2007.
Hainer provided a summary of the integration of adidas and Reebok, raising expected annualised cost synergies to euros 175 million (from an original estimate of euros 125 million) with the net impact realised in 2009. Annual revenue synergies of euros 500 million will also be fully realised in 2009.
"We are showing terrific progress in the continued integration of Reebok, and are fully confident we can leverage our combined strengths to deliver on our ambitious goals as a Group," Herbert Hainer said.
The group has also announced an 11-year strategic global merchandising partnership with the National Basketball Association.
It will make the adidas brand the official uniform and apparel provider for the NBA, the Women's National Basketball Association (WNBA) and the NBA Development League (D-League) beginning with the 2006-07 NBA season.
The new merchandising relationship with adidas, a marketing partner of the NBA since 2002, comes as a result of the group's January 2006 acquisition of Reebok International Ltd., the NBA's exclusive uniform and apparel provider since 2001 and includes rights to sell apparel as well as casual and performance footwear in the U.S., Canada, Europe, and Asia.
The Reebok brand will continue to be a global marketing partner of the NBA and will maintain the ability to create NBA branded footwear.
