AD-HOC: adidas Group adjusts net income guidance for 2007
The Executive Board of adidas AG has decided to increase investment in the Reebok segment in 2007. This includes investments in advertising, new media, point-of-sale communication, product development and initiatives to grow the brand in emerging markets. Management believes this strategy will significantly strengthen Reebok’s medium- and long-term position in the marketplace. As a result, Reebok’s profit growth in 2007 will be lower than originally expected. Therefore, 2007 net income growth for the Group is now projected to approach 15% against the 2006 level. Originally, the Group had expected to grow net income by 20%.
The Group’s medium-term guidance remains unchanged. Detailed guidance for 2007 will be provided with the announcement of the Group’s 2006 Full Year Results on March 7, 2007.