The world's second-biggest sportswear firm, which has been losing ground to market leader Nike, said fourth-quarter sales rose 3.3 percent to 3.48 billion euros ($4.78 billion), at the top end of analyst forecasts.

Adidas is focusing on soccer and running in an attempt to maintain leadership on its European home turf as Nike gains market share. The company was already forced to rein in its 2013 profit forecasts in September.

Nike saw total revenue rise 8 percent to $6.43 billion in the quarter ended November 30, as sales in western Europe grew 12 percent. On Wednesday, Adidas said sales in western Europe rose 1.9 percent in its fourth quarter to December 31, or 3.4 percent on a currency neutral basis.

For 2014, Adidas expects the World Cup, exposure to emerging markets and the expansion of its retail business to help currency-neutral sales grow at a high single-digit rate, compared to a rise of 3 percent in 2013.

But it said weaker currencies in markets like Russia and Argentina would have a "significant" negative impact and it forecast higher labour costs as wages rise in key production centres such as China.

Adidas shares were indicated 1.7 percent lower in pre-market trading, while Germany's blue-chip index DAX was seen slipping 0.3 percent.

"Due to the fact that the 2014 earnings guidance from the side of Adidas management is well below market expectations, short term price pressure is to be expected," said DZ Bank analyst Herbert Sturm.

Tumbling emerging market currencies have hit Adidas shares in recent weeks, falling 10 percent this year to make the company one of the worst performing German blue-chip stocks.

Adidas expects an operating margin of 8.5-9 percent in 2014, up from 8.3 percent in 2013, when management had initially hoped to approach 9 percent, noting that the resurgence of its long-struggling fitness brand Reebok should help profitability.

Adidas said on Tuesday it had extended the contract of long-serving Chief Executive Herbert Hainer until 2017, but would work with him on a succession plan to ready the company for "generation change".

(Reporting by Emma Thomasson; editing by Tom Pfeiffer)

Stocks treated in this article : Nike Inc, adidas AG