Adidas vows to up its game as profits crash
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.”