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Adidas takes Reebok impairment, sticks to 2018 outlook

International Business
Thu, 09 Aug 2018


BERLIN: German sportswear firm Adidas has taken an impairment charge on its struggling Reebok brand, but said the retrospective accounting move would have no impact on its 2018 results as it reported a better-than-expected second quarter.

Sales came in at 5.26 billion euros ($6.11 billion), a rise of 10 per cent after currency effects, and ahead of average analyst forecasts for a rise of 8 per cent.

Net profit from continuing operations rose 20 per cent to 418 million euros, also beating analyst expectations for 386 million.

However, Adidas said it was taking an a medium triple-digit million euro impairment related to the Reebok trademark in 2016 after the German Financial Reporting Enforcement Panel disagreed with how it calculated historical book value.

But it said the restatement had no impact on its cash position and reiterated its guidance for 2018 and beyond, adding that Reebok's prospects were unchanged, even as the brand reported a 3 per cent fall in sales in the second quarter. ($1 = 0.8616 euros) (Reporting by Emma Thomasson Editing by Maria Sheahan)

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