Shares of German sporting goods maker Adidas rose more than 6% Tuesday after reporting quarterly results in line with market expectations.
Despite a drop in first-quarter net profit of 11% an impressive order backlog at both the parent brand and at Reebok gave investors a reason to be optimistic.
"I was always convinced that what we have announced to the market in the previous months -- that we will turn Reebok around and it will take some time -- and now we see the first results,” Adidas CEO Herbert Heiner told “Power Lunch Europe."
And the company is still poised to do well in 2007, a year in between big sporting events, Heiner said.
With the acquisition of Reebok, Adidas now has higher exposure in the U.S. market. In the last 12 months Adidas signed a deal to become the official uniform provider of the National Basketball Association and signed an agreement with the Mexican national soccer team.
"These have been two moves out of many which really bring Adidas to the forefront," Heiner said.
Shares of Adidas have climbed steadily in the last couple of weeks, sparking rumors of private equity interest.
But Heiner declined to comment on any takeover speculation, saying that "we take it as a compliment that a lot of investors are interested in the Adidas brand."