Adidas reports weak 2nd quarter

nike mercurial victory x AG plans an advertising blitz next year to stave off market share losses and will reduce costs at its golf unit as declining sales prompted the world's No. 2 sports-gear maker to cut its 2014 profitability forecast. Operating profit this year will be 6. 5 percent to 7 percent of sales, rather than the 8. 5 percent to 9 percent range predicted earlier, Herzogenaurach, Germany-based Adidas said Thursday in a statement, blaming weak U. S.


revenue, tumbling sales from golf equipment in North america and China and Russia's dispute with Ukraine. The stock fell to a two-year low.Adidas took investors by surprise a week ago with an initial report that included other forecast cuts as second- quarter earnings missed analysts' estimates. Hainer is testing investors' patience with the lower outlook and climbing marketing expenses, especially after predicting in May that Adidas would post a "strong" second quarter. nike tiempo legend iv fg


"Execution remains a serious issue for this management team, " John Guy, an analyst at Berenberg Bank, said in a note to clients today. "Golf, financial restructuring and other initiatives will continue to impact Adidas's financial performance in 2015, so no quick fixes here. "


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Simply 3 days back, Adidas had been celebrating the actual triumph associated with it's house nation's group within soccer's Globe Mug. The organization stated it's sponsorship associated with each groups which performed within the last had been sparking product sales in excess of 8 zillion reproduction Globe Mug jerseys since it is designed for just two million pounds within soccer-related income this season. The business's Reebok informal physical exercise clothes as well as footwear are also promoting much better.adidas 11pro trx tf


Second-quarter net income totaled 144 million euros, Adidas said on July 31, lower than the 150 million-euro average analyst estimate. Sales rose 2 percent to 3. 47 billion euros, about matching analysts' average though held back by an 18 percent drop at the golf division. Revenue in the period fell 4. 3 percent in North america, 5 percent in Asia outside China and 1. 3 percent in the European emerging-economies region that includes Russia, adidas adipure herren said today. Spending on marketing will amount to 13 percent to 14 percent of sales next year, an increase of 1 percentage point from an earlier planned range, the company said today.