Adidas turns corner but profits dive

Andy Murray's new sponsor Adidas today said "the worst is over" and predicted this Christmas will be better than last as it posted an expectation-beating third-quarter profit.

The world's second-biggest sportswear maker, which yesterday added Britain's number one tennis player to its "brand representatives", saw third-quarter profit fall 30% to 213 million (£192 million) as it felt the pinch of heavy discounting in stores.

Sales at its Adidas brand fell 4.8% while Reebok dropped 11%.

Earnings were affected by more expensive materials costs as well as currency effects, particularly the weaker Russian rouble.

Chief executive Herbert Hainer admitted "consumer and retailer sentiment still hovers between fear and optimism".