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[August 08, 2014]
Adidas vows to up its game as profits crash
(City A.M. (UK) Via Acquire Media NewsEdge) GERMAN sportswear giant Adidas yesterday announced a 25 per cent drop in half-year net profit, blaming this on consumer sentiment in Russia and the euro's strength.
Although World Cup-related sales increased two per cent to €3.465bn (£2.75bn) in the second quarter of 2014 , its first half, pre-tax profit dived 25 per cent to €495m from €663m in 2013.
In Russia, Adidas will open only 80 stores this year, due to the rouble's weakness against the euro.
The world's second largest sportswear firm - after Nike - said it would launch its biggest marketing campaign ever next year, raising marketing expenditure to up to 14 per cent of sales, above a previous target of 12 to 13 per cent.
Chief exec Herbert Hainer said: "We'll look carefully to get the biggest bang out of our money," (c) 2014 City A.M.
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