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.