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Adidas Struggles Amid World Cup Boost as Profits Fall Short | Sports-Games
Revenue grew 14% as World Cup demand and retro styles lifted sales, but operating profit missed estimates after marketing spending rose 30%.
- Adidas raised its annual revenue growth guidance to 9% to 10%, citing strong demand during the June FIFA World Cup. Quarterly revenue grew 14% to €6.74 billion, surpassing analyst projections of €6.63 billion.
- The company increased marketing spending by 30% to support campaigns for 14 sponsored national teams during the tournament. Adidas retail foot traffic spiked 44.7% during the first full week of World Cup group-stage action, according to Placer.
- Adidas shares tumbled more than 17% in Frankfurt after operating profit rose 5% to €574m, missing the €623 million consensus. Felix Jonathan Dennl, analyst at Frankfurt-based Metzler, cited an "8% EBIT miss" and Chief Financial Officer Harm Ohlmeyer's exit as factors.
- Ohlmeyer will not extend his contract, prompting Adidas to appoint Birgit Kretschmer as the new Chief Financial Officer at year-end. This leadership transition contributed to negative investor sentiment alongside the profit shortfall.
- Investors hope new styles will sustain momentum as popularity for Samba and Gazelle sneakers fades. CEO Bjorn Gulden emphasized "increasing product availability" to maintain competitive edge against Nike.
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41 Articles
German sportswear maker Adidas shares fell nearly 19 percent on Thursday, the biggest one-day drop in the company's history, as investors were disappointed by a weaker-than-expected second-quarter profit, even as the company raised its sales forecast for the year, Reuters reported.
·Vilnius, Lithuania
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Sports Industry: The Big Adidas Puzzle – 18 Percent Crash on the Stock Market Despite Record Numbers
Adidas celebrates the most successful World Cup in the company's history, with figures shining – yet the stock falls by 18 percent. The reasons for this are hidden in detail and have to do with a critical personality.
·Berlin, Germany
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Coverage Details
Total News Sources41
Leaning Left4Leaning Right8Center13Last UpdatedBias Distribution52% Center
Bias Distribution
- 52% of the sources are Center
52% Center
L 16%
C 52%
R 32%
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