Adidas AG Revenues Rise 14% Following World Cup Investment

Adidas AG reported a 14% increase in currency-neutral revenues to €6.7 billion for the second quarter. Bjorn Gulden, the company's CEO, attributed this growth to the Backyard Legends marketing campaign and the success of sponsored teams Spain and Argentina in the World Cup finals. The company achieved double-digit increases across all markets and a 25% gain in direct-to-consumer growth.

To achieve these results, the company invested $1.07 billion in marketing during the quarter, including an additional $280 million investment. This spending limited operating profit growth to 5%, which fell below analyst forecasts. Following the report, Adidas share prices initially declined.

Despite the profit miss, some analysts suggest that investors are underestimating the impact of Gulden's reforms regarding product design and distribution.