The German sports goods retailer, Adidas-Salomon expects European sales to climb by a single-digit percentage in 2005 despite a recent order decline in the main market. Chief executive Herbert Hainer told Reuters: "We expect sales in Europe to rise only slightly in the first half, but see stronger growth in the second half (adjusted for currency effects)."

Hainer spoke a day after rival Puma announced that it expected sales growth to slow in Europe. "Europe is globally the most difficult region at the moment," said Hainer. Adidas generates approximately half its sales in Europe. As the global number two after Nike, which saw its orders decline in the home market at the end of the third quarter, analysts worried about Adidas's growth chances. Due to a lack of major sports events planned for this year and a slow consumer climate, the industry is faced with a difficult year.

Hainer has also indicated that Adidas would propose raising its dividend "significantly" for 2004. The dividend will be announced at its annual news conference on 9 March. Hainer added that the group would try to achieve double-digit profit growth in 2006, when Germany hosts the soccer World Cup. He confirmed the company's net profit growth forecast of 10% to 15% for 2005. "We have a much better gross margin than in previous few years...and I see no reason why it should fall in 2005 or 2006," said Hainer. In 2004 the gross margin stood at 47.2%.