The Adidas Group may continue to make small acquisitions like last year's $25 million takeover of Five Ten, but it is unlikely to engage in share buybacks or in large takeovers this year, according to Börsen-Zeitung, a German newspaper that quoted Robin Stalker, chief financial officer. This may lead the company's directors to propose higher dividends for its shareholders.
The group expects a mid- to high single-digit increase in sales for this year, partly because of the Adidas brand's exposure at the UEFA football championships and the London Olympic Games. Revenues from football products will likely exceed the €1.5 billion attained in the World Cup year of 2010.
The management is budgeting an increase in net earnings of between 10 and 15 percent for this year, and it is targeting an operating margin of at least 11 percent by 2015. Reebok should contribute to boost margins thanks to the roll-out of extended apparel collections under this brand, whose margins will be higher than those achieved with footwear.
While lifestyle products will not represent more than 30 percent of sales for the Adidas brand, the ratio may be higher for Reebok.
