Adidas profit down 11 % | RetailDetail

Adidas profit down 11 %

Adidas profit down 11 %

Sports clothing manufacturer Adidas's profit has dropped 11 % in its third quarter, despite a 6 % turnover increase. Its golf division did not performed well at all, which impacted results severely.

Golf does not sell

Adidas managed to increase its turnover 6 % to 4.1 billion euro in the third quarter, but its net profit dropped 11 % to 282 million euro. Disappointing exchange rates and a stumbling golf division pulled profit down. The golf division's turnover fell 36 %, which followed Adidas' profit warning in August. Especially golf brand TaylorMade failed to live up to expectations.

 

The company managed to grew turnover in Latin America, Europe and China, but North American turnover dropped 1.4 %, which means that Adidas still cannot put pressure on Nike in its home country. Western European and Russian turnover growth even reached double digits.

 

Reebok on the way back

Reebok has continued its upward trend with its sixth consecutive quarterly growth. Adidas has tried to turn Reebok into a fitness brand and that has seemingly worked.

 

Adidas now hopes to get a 650 million euro net profit and a 5 % turnover growth for 2014, down from its earlier 830 million euro forecast.

Questions or comments? Please feel free to contact the editors


Ahold Delhaize launches digital lab in the United States

22/05/2018

Ahold Delhaize’s American division will found a new company focused on digital innovation: Peapod Digital Labs will become a lab for new digital, eCommerce and personalization strategies. 

Carrefour forced to shut down hundreds of Dia stores

22/05/2018

Carrefour has not found a buyer for hundreds of its former Dia stores in France yet. That may force nearly 230 stores to shut down.

Carrefour and Tencent launch high-tech store in Shanghai

22/05/2018

The recently launched ‘Le Marché’ store formula, a first collaboration between Carrefour and Tencent, allows customers to pay with face recognition at unmanned checkouts.

Hoegaarden moves part of production to Vietnam and China

18/05/2018

Hoegaarden experiences strong growth in Asia, but is losing ground in Europe. That is why AB InBev will move part of the production to China and Vietnam: the brewery in Hoegaarden will lower cut its production days by 2 a week.

Holland & Barrett wants vegan stores

17/05/2018

British health chain Holland & Barrett (previously known in the Benelux as Essenza) plans to open completely vegan stores, a trend the chain needs to follow according to CEO Peter Aldis.

Nestlé on a diet: cuts back sugar, fat and salt levels

17/05/2018

Nestlé wants to lower its sugar, salt and fat levels to play into the global demand for healthier food.