Adidas's profit in the first quarter was lower than analysts had expected. Turnover also dropped and was also lower than expect, with the golf branch as the biggest let-down.
Exchange rate fluctuations
Adidas's net profit has dropped from 308 million euro to 204 million euro in the first quarter, much lower than even the most pessimistic analysts had estimated (at 218 million euro). Turnover dropped 6 % to 3.53 billion euro.
Part of those disappointing results was because of the negative exchange rates, with a very strong euro and dropping sales within the golf branch, with a double-digit sales drop.
Positive forecast for the rest of 2014
"Our financial results for the first quarter reflect the challenging start to 2014 which we had expected. Looking in depth through our results, however, there are many positive underlying trends. Therefore, we can look forward to an accelerated period of growth and momentum for our Group for the remainder of 2014."
Without the effect of the exchange rates, Adidas had a turnover increase in pretty much every region, except for North America. European turnover remained relatively stable, with good results in Germany and Poland, but weaker results in the United Kingdom and Italy.