Olympics boosted Adidas's first-half sales in China by 60%

Adidas will reach its target of “high single-digit'' sales growth and 15 percent earnings growth in 2008 said company's Chief Executive Officer Herbert Hainer.

 Adidas, based in Herzogenaurach,
Germany, will also continue taking legal action to protect its
three-stripe brand following this week's trademark-infringement
settlement with Wal-Mart Stores Inc.. The Wal-Mart payment will be a
“nice present'' for Adidas' third-quarter results, Hainer said,
declining to give a figure.

The lawsuit against Wal-Mart was
Adidas' third in 13 years, and the company has taken legal action
against Hennes & Mauritz AB and C&A Group.

“We will be rigorous in pursuing all
intellectual property infringements,'' Hainer, 54, said. “We want to
give a clear example to other companies that we are serious.''

“I've just come back from the Olympics
in China, where there's very high purchasing power and people are in
the mood to buy,'' in contrast to the U.S., Hainer said. “Naturally,
if there's a worldwide recession tomorrow, that will affect our
company.''

Adidas can “easily live'' with a
dollar at around $1.40 to $1.50 per euro, as most of its suppliers
are based in Asia, where currencies are pegged to the dollar. That
helps Adidas keeps costs low even as U.S. revenue declines, Hainer
said.