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FRANKFURT - ADIDAS, the second biggest sportswear company, posted increased 2007 results on Wednesday even though its Reebok unit lagged behind.
The German group said net profit had gained 14 per cent to 551 million euros (S$1.16 billion), while operating profit rose by eight per cent to 949 million.
Sales were hurt by unfavourable exchange rates and grew by just two percent to 10.30 billion euros, a company statement said.
The group's main problem however remained Reebok, which suffered a six per cent drop in sales last year.
Adidas said that the unit's head, Paul Harrington, would be replaced by marketing chief Uli Becker.
For 2008, a year that will witness several major sporting events, Adidas' order backlog - a key indicator of future sales growth - was at a 10-year high, and the company said it expected net profit to gain at least 15 per cent.
In addition to the Beijing Olympics, the European soccer championship is to be held in Austria and Switzerland this year.
Adidas announced the acquisition of Reebok in 2005 for 3.1 billion euros to boost its market share in the United States and narrow the gap with rival Nike, and has invested in marketing to revive the brand's popularity.
The German company said last year that it expected sales at Reebok to return to growth in 2009, with order backlogs already showing improvement in the second half of this year.
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