Page last updated at 08:48 GMT, Wednesday, 5 August 2009 09:48 UK

Adidas sees profits plunge by 95%

David Beckham
Adidas provides kit to some of the world's best-known football teams

Sportswear giant Adidas has reported a fall in profits for the April to June period of 93% as consumer spending fell during the economic downturn.

Net profit came in at 8m euros ($11.5m; £6.8m), compared with 117m euros for the same period a year earlier. Sales fell 2.5% to 2.46bn euros.

But the company was upbeat about its prospects for the rest of the year.

"I believe we have seen the bottom in our financial performance this year," said Adidas boss Herbert Hainer.

"We did not see any fundamental deterioration in our business since publishing our first-quarter results... I am confident that our results will improve as we go through the remainder of the year," he added.

Sales grew in the US and in Latin America, but fell in most major European and Asian markets.

The company also said that profit margins were squeezed due to higher operating costs and an increasingly competitive retail environment.

For the full year to date, the company reported a profit of 12m euros, down 96% on the same period a year ago.

Sales were down 2% to 5.03bn euros.

Adidas is the world's second-biggest sporting goods maker, after Nike.

The German firm bought Reebok in 2006 to help it compete against Nike.

It also owns the Taylormade golf brand, where sales actually increased during the second quarter.

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