Adidas lowers sales prognosis following bad six months

Adidas lowers sales prognosis following bad six months

German sporting goods producer Adidas has lowered its sales prognosis for 2013. In the first half of the year the company had to take a drop in sales of 3% due to the weak European market and disappointing exchange rates for sales in Asia and Latin America.

Big drop in sales in Europe

Sales of Adidas amounted to only 7.13 billion euro in the first six months of 2013. This was mainly due to a 9% decline in sales in Europe to 1.9 billion euro. On the other markets sales would have risen, if exchange rates had stayed constant - which was not the case.

 

Converted to euro the rise in sales of 1% on the Asian Markets outside of Greater China, changed to a drop of 8% to 1.064 billion euro. The same could be said for Latin America, where a rise of 16% diminished to 8% after conversion, at 765 million euro.

 

Rival Nike increases lead

Those circumstances have led to a change in prognosis for the entire year: Adidas downgraded its forecasts from 5% to "a growth of 1% to 5% at unchanged exchange rates". Financially Adidas did make a net profit of 480 million euro, 5.6% more than in the same period of 2012.

 

Because of these disappointing sales, Adidas is in danger of doing worse than its eternal rival, American Nike. They had a rise in sales of 7% at the end of its financial year 2012/2013, which ended in March. At unchanged rates the rise would have been even bigger, at 9%.

 

Questions or comments? Please feel free to contact the editors


Small Belgian brewery conquers Brazil thanks to playing cards

13/09/2017

Het Nest, a small brewery from Turnhout, will get its beers brewed in Brazil as well. It has struck a deal with Cervejaria Premium Paulista, which will brew and distribute the beers locally.

Price cuts drive 25 % more customers to Whole Foods

12/09/2017

Supermarket chain Whole Foods welcomed an additional 25 % of customers in the first few days following Amazon’s price cuts.

Ter Beke enters British food service industry

12/09/2017

Belgian food group Ter Beke has acquired a 90 % stake in British competitor KK Fine Foods for an undisclosed fee. The current shareholders hold onto the other 10 %.

Godiva wants to conquer the world through supermarkets

12/09/2017

Belgian praline brand Godiva will soon sell its chocolate in supermarkets all over the world after signing a deal with chains like Albert Heijn and Sainsbury’s. Previously, it sold nearly all its chocolate through its own store network.

Insight: Xavier Piesvaux' seven labours at Delhaize

10/09/2017

Can one French and several Dutch managers do what the Belgian management failed to do these past few years at Delhaize Belgium? Its new CEO will face plenty of challenges: we count at least seven.

Nestlé USA acquires food manufacturer Sweet Earth

08/09/2017

Nestlé USA has acquired American Sweet Earth for an undisclosed fee. The company mainly manufactures meat replacements, a rapidly-growing market, but also several frozen meals.

Back to top