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%.