By Linda Pasquini
July 30 (Reuters) - German sportswear maker Adidas raised its sales forecast for the year on Thursday after a strong second quarter boosted by the soccer World Cup and demand for its latest retro styles, though profits missed expectations, sending its shares tumbling more than 17%.
Adidas' operating profit in the quarter undershot analysts' estimates, as it spent 30% more on marketing due to campaigns related to the tournament.
In a separate statement, Adidas said it appointed Birgit
Kretschmer to succeed Harm Ohlmeyer as chief financial officer at the end of the year, following Ohlmeyer's decision not to extend his current term.
Its shares were over 17% down in their sharpest drop ever at the market open in Frankfurt.
"We think the adverse share price reaction this morning is a cocktail of Harm Ohlmeyer not extending his contract coupled with the 8% EBIT miss," said Felix Jonathan Dennl, analyst at Frankfurt-based Metzler.
As the popularity of its Samba and Gazelle sneakers gradually fades, investors are hoping the visibility from the World Cup will help Adidas maintain its sales momentum as it rolls out new styles and seeks to stay ahead of competitors such as U.S. rival Nike.
"The growth related to the World Cup was (...) accelerated by our strategy of increasing product availability in the interest of our consumers and retail partners versus optimising inventories," CEO Bjorn Gulden said in a statement.
Adidas sponsored a total of 14 national teams in the June FIFA World Cup, including both finalists Argentina and Spain.
Foot traffic at Adidas retail stores in the U.S. spiked 44.7% on the year in the week of June 15, the first full week of World Cup group-stage action, according to a report by Placer.ai, a company that gathers foot traffic data.
The company now expects revenue to grow by a currency-adjusted 9% to 10%, compared with a previous guidance for high single-digit growth.
It still expects operating profit to increase to around €2.3 billion this year, after operating profit in the April to June period rose by 5% to €574 million but came in below an analyst consensus of €623 million.
Quarterly revenue grew by a currency-adjusted 14% to €6.74 billion ($7.72 billion), above the €6.63 billion projected by analysts in a company-compiled poll.
The rise was driven by double-digit growth in all regions except Europe, where heavy discounting at many retailers was putting lifestyle footwear under pressure, the company said.
(Reporting by Linda Pasquini;Editing by Ludwig Burger and Emelia Sithole-Matarise)
