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


Carrefour Belgium launches personal shoppers with 90 minutes delivery

19/07/2018

In the intense struggle for the customers' favour, Carrefour Belgium has presented a new service - featuring personal shoppers, delivery within 90 minutes and an app that can be expanded into a market place.

Cultured meat in stores by 2021?

18/07/2018

Commercialization of laboratory cultured meat is coming closer. Pioneer Mosa Meat has raised 7.5 million euros for the construction of a factory that will bring an affordable product to the market within three years.

Aldi commits to renewable energy

17/07/2018

Aldi Nord has published an ambitious international climate policy: the retailer wants to reduce greenhouse gas emissions by 40% by 2021 and reveals some compelling figures in its second sustainability report.

Discounters' major opportunities for growth in Western Europe

16/07/2018

Despite the multitude of stores in most European markets, discounters plan to open up to ten million square metres of store surface in five years' time. Even in so-called saturated markets they still see a lot of chances for growth, LZ Retailytics says.

Contamination bites huge chunks of Greenyard's value

16/07/2018

Vegetable producer Greenyard is under attack after a listeria contamination in its Hungarian factory. The company says to have taken all necessary measures, but the share price plummets.

Starbucks dumps plastic straws worldwide

12/07/2018

American coffee company Starbucks will ban plastic straws in their stores starting from 2020. A small step for coffee enthusiasts, but a big step for the environment, as the coffee giant uses about a billion straws every year.