The price of a share in German sportswear manufacturer Adidas has jumped to a new record high after the firm reported solid earnings in the first quarter of 2013. Profit and margins rose in spite of weaker markets.
Adidas' share price surged 6.6 percent in early trading Friday, setting a new record of 84.75 euros ($110.4), as investors were seeking the stock after solid results in the first quarter of 2013.
Net profit in the first three months of this year rose 6 percent to 308 million euros, compared with the same quarter a year ago, the German sportswear and equipment maker said in an earnings report.
Even though sales fell slightly by about 2 percent to 3.75 billion euros, a substantial hike in margins showed rising profitability at the firm. Adidas said it had reached a margin of 50.1 percent, meaning that the firm is able to pocket more than half of the price of each of its products.
The boost in profit and margin would make Adidas shares the top pick in the consumer goods' segment, DZ Bank's stock market analyst Herbert Sturm told Reuters news agency.
Demand in Eastern Europe, Asia and North America had been especially strong in the first quarter, Adidas said, making up for weaker markets in Western Europe. In addition, the firm's struggling US-based subsidiary Reebok contributed more to the result than in previous quarters.
Moreover, Adidas's newest "TaylorMade" golf equipment series grew at a double-digit rate between January and March.
Positive response to the firms latest product innovations would provide reason to believe that Adidas may maintain its dynamic growth in the course of the year, said Chief Executive Herbert Hainer.
Sales were expected to grow 5 percent in 2013, boosting full-year net profit to 920 million euros, he added.
uhe/hc (Reuters, dpa)