Adidas profits rise sends share price higher

Adidas, the world's second-biggest sportswear firm, has posted higher profits despite seeing sales fall in the first three months of 2013.

The German company said more people were buying its higher-priced items, helping net profits rise 6.5% to 308m euros.

Its gross profit margin on sales was 50.1%, only the second time it has ever reported a figure above 50%.

In Frankfurt, Adidas shares jumped almost 6% in early trading.

Adidas chief executive Herbert Hainer said the results were particularly impressive, given that in the same quarter last year, sales rose in the run-up to the Olympics and European football championships.

A double-digit decline in revenues at Reebok, plus exchange-rate effects, hit first-quarter group sales, which at 3.75bn euros fell just short of analysts' expectations.

Adidas has been struggling with problems at Reebok, and took a 265m-euro writedown on the brand last year.

Reebok lost a major US football contract with the NFL and a fraud was uncovered at its Indian operations.

Adidas plans a drive to boost Reebok sales in 2013, with a focus on yoga, dance and fitness training.