German sportswear maker Adidas aims to sell its loss-making golf business and focus on shoes and clothing. As Sara Hemrajani reports, it follows strong quarterly sales of its core Adidas brand, particularly in the United States, home to its main rival Nike.
Showing off the pedigree of its athletes in what's set to be a mega year for sports. With Euro 2016 and the Olympics on the calendar, Adidas says it's confident about scoring some big goals. SOUNDBITE: Herbert Hainer, Adidas CEO, saying (English): "Especially the Euro football championship gives us great opportunity for, first and foremost, showcasing our brand but also driving revenues because, as you know, we are selling the shirts of nine competing teams. Then we have the official match ball. We bring an array of new football footwear products to the market. So this is a real revenue enhancing event. Whereas the Olympics are more than you can showcase your brand and what innovative products you bring for the individual disciplines." Adidas isn't an official sponsor of the Rio Games but the German company doesn't appear to be worried. Profit and revenue are seeing double-digit growth, prompting another rise in the earnings forecast. And Adidas is even gaining ground in North America, the home turf of arch rival Nike. SOUNDBITE: Herbert Hainer, Adidas CEO, saying (English): "We are definitely on a fast pace with our growth around the world, especially in America. And the competition with Nike, I think, is raising the profile of both brands, because when you look around the world, in some markets we are leader, in some markets they are leader, it's always a neck-to-neck race. And this makes both companies better, I'm absolutely convinced about that." But there's one division performing below par... Adidas has confirmed it's putting its loss-making golf unit up for sale. The company says it's happier to focus on shoes and clothing, including collaborations with the likes of Kanye West and Katy Perry.