Adidas raises outlook after third-quarter profits grow

German sportswear firm Adidas has raised its outlook for full-year sales and profits after better-than-expected results for the third quarter.

It expects net income from continuing operations, excluding goodwill impairment, to increase by about 10% from a previous 7% to 10% target.

The firm said its golf business had recovered from a recent slump.

Nevertheless, it expects to cut 14% of its TaylorMade-Adidas Golf global workforce by the end of the year.

In the third quarter, net income from continuing operations grew 20% to €337m, while sales grew 13%.

The firm reported double-digit sales increases in the US and China, despite an economic slowdown.

The company's TaylorMade golf business, which it has said it could consider selling because of the sport's declining popularity, also saw revenues rise 6%, driven by double-digit growth in North America.

Adidas said it was continuing to streamline the TaylorMade business and would cut its global staff by 14% by the end of the year, which it said would hit group profitability by a low double-digit million euro amount in the fourth quarter.

"The investments into our brands and a leaner golf organisation will directly fuel next year's top- and bottom-line performance and set us up for sustainable profitability improvements from 2016 onwards," chief executive Herbert Hainer said in a statement.