The share price of Adidas sportswear manufacturer has made a new highest record when the firm reported about a huge profit within the first three months of 2013. Although the market became a little weak with the profit margin grow irresistibly.
This German Company’s’ share price rushed 6.5 percent in early trading Friday and the company gained 84.75 Euros $110.4 by setting a new record). Its net profit in the first quarter of this year increased to 6 percent to 308 million euros if you compare it with the results of the previous year.
Fortunately, when the sales slightly decreased around 2 percent to 3.75 billion Euros, a significant hike in margins showed rising profitability at the firm. Adidas reveals the fact that it had reached a margin of 50.1 percent again whereas the earlier figure was around 50%.
The increase in profit and margin resulted in the shares of Adidas as one of the top picks in the consumer goods’ division. The chief executive of Adidas Herbert Hainer said that the sales have recently increased due to Olympic and European football championship.
Besieged by Reebok, Adidas gained a profit of 265 m-euros whereas Reebok lost a major US football contract with the NFL because of the scam that exposed at its Indian operations.
Right now, the Company tries to increase their sales in 2013 with the help of different programs such as yoga, dance and fitness training. According to Herbert Stum, the result was awesome as the company became successful and it improved their margin in the competitive market.