adidas ag (ADDDF) Snapshot

The University of Wisconsin-Madison dropped its lawsuit against apparel Adidas AG after Adidas' settlement with former workers at a factory shuttered in 2011 in a shutdown that UW alleged violated the contract between the university and the firm.

Adidas Group announced consolidated earnings results for the first quarter ended March 31, 2013. Net Sales were EUR 3,751 million against EUR 3,824 million a year ago. operating profit was EUR 442 million against EUR 409 million a year ago. Income before taxes was EUR 427 million against EUR 389 million a year ago. Net income was EUR 309 million or EUR 1.47 per basic and diluted share against EUR 289 million or EUR 1.38 per basic and diluted share a year ago. The Group's net income attributable to shareholders increased to EUR 308 million in the first quarter of 2013 from EUR 289 million in 2012. This represents an increase of 6% versus the prior year level. Net borrowings at March 31, 2013 amounted to EUR 180 million, which represents a decrease of 460 million, or 72%, versus EUR 640 million at the end of March 2012. The decrease was driven by the strong operating cash flow development over the past 12 months. The company provided earnings guidance for the full year of 2013. adidas Group sales are forecasted to increase at a mid-single-digit rate on a currency-neutral basis in 2013. In 2013, the adidas Group gross margin is forecasted to increase to a level between 48.0% and 48.5% (2012: 47.7%). The Group tax rate is expected to be at a level between 28.0% and 28.5% and thus more favourable compared to the prior year tax rate of 29.3% excluding goodwill impairment losses. As a result of these developments, earnings per share are expected to increase at a rate of 12% to 16% to a level between EUR 4.25 and EUR 4.40 (2012 excluding goodwill impairment losses: EUR 3.78). This represents net income attributable to shareholders of EUR 890 million to EUR 920 million.

The adidas Group has announced the appointment Gunter Weigl as the new senior vice president, or SVP, of global sports marketing & sport relations. Gunter Weigl will succeed Michael Riehl. Currently, Gunter Weigl is Managing Director adidas Group Central Europe. Winand Krawinkel, currently Managing Director adidas Group South Africa, will succeed Gunter Weigl as MD adidas Group Central Europe. Both appointments will be effective July 1, 2013. A new MD adidas Group South Africa will be announced in the near future. In his new role, Gunter Weigl will be responsible for all major adidas partnerships with federations, leagues, clubs, athletes and all other Sport Relations activities. He will report directly to Erich Stamminger, adidas Group Executive Board Member, responsible for Global Brands. Gunter Weigl will also work in close cooperation with adidas Group CEO, Herbert Hainer, for all Sport Relations aspects. Gunter Weigl joined adidas in 1992. In his new role, Winand Krawinkel will report directly to Roland Auschel, Chief Sales Officer Multichannel Markets.