.jpg) |
| Adidas |
Adidas, the world's No. 2 maker of sports gear, said third quarter operating profit dropped 6 percent while sales fell 7 percent, hit by distribution problems in Russia, currency effects and poor sales of golfing products.
***Ads***
Get out Android App - fanapp.mobi/lovefootball
Insurance quote (South Africa only)
Transfer contact music photos sms form iPhone , Android to Nokia
Bitdefender Antivirus software - more value for you
***
Last year, results were boosted by the Olympics and the European soccer championships. But Adidas has struggled to maintain momentum , warning on sales and profit in September. Adding to its woes, Nike has outperformed on its home turf.
Nike reported an 8 percent rise in sales in western Europe in its first fiscal quarter to the end of August, compared with a fall of 6 percent for Adidas at constant currencies in its third quarter.
Adidas Chief Executive Herbert Hainer said next year's World Cup and positive feedback for its upcoming collections meant growth would return.
The leader in the $5 billion soccer market traditionally performs well in years with major sporting events and has forecast record soccer sales of more than 2 billion euros ($2.7 billion) in 2014.
"We have dealt swiftly and decisively with our challenges in the third quarter, to ensure we return to growth," Hainer said in a statement on Thursday. "Momentum will clearly return to our business in the fourth quarter and beyond."
Despite the fall in sales and operating profit, the group managed to improve its gross profit margin - a key measure of profitability in the apparel industry - 1.9 percentage points to 49.3 percent in the quarter as it pushed through higher prices and made more sales in its own shops.
Source : economictimes.indiatimes.com
Tags : bafana,brazil, world cup, adidas,nike, Europe
***Partners***
Links : salovesfootball.mobi
***Social***
Twitter: twitter.com/salovesfootball