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


Scotland is first to enforce minimum alcohol price

21/11/2017

Scotland is the first in the world to finally enforce a minimum price for alcohol. The law as approved in 2012, but whisky distillers managed to block the legislation up until now.

Europe approves organic reform, Belgium abstains

21/11/2017

The European Commission approved new legislation to simplify organic agriculture in Europe. It will be enacted in July 2020. There was no agreement among Belgian politicians, which is why Belgium abstained.

Greenpeace creates critical parody of Coca-Cola's Christmas commercial

20/11/2017

Many people consider Coca-Cola’s Christmas ad to signal the start of the holiday season. However, this time around, Greenpeace created a parody to highlight the pollution at the hands of the soda manufacturer.

Alibaba invests 2.5 billion euro in Auchan subsidiary

20/11/2017

Chinese eCommerce giant Alibaba acquired a 36 % stake in supermarket firm Sun Art Retail Group, China’s second largest supermarket chain with 450 supermarkets. French retailer Auchan is the group’s largest shareholder.

Lucas Bols drunk in love with Passoã

16/11/2017

Liquor manufacturer Lucas Bols’ turnover has grown 23.8 % in the first six months of its broken fiscal year, to 48.8 million euro. Aside from 0.5 %, the entire growth is thanks to liquor brand Passoã’s integration.

"Hunkemöller prepares IPO"

16/11/2017

According to financial press agency Bloomberg, investment company Carlyle Group ordered Rothschild bankers to prepare an IPO for Hunkemöller.

Back to top