Adidas warns on profit as sales continue to weaken

 
City A.M. Reporter
GERMAN sports wear maker Adidas warned on 2013 profit yesterday saying adverse currency effects, a distribution problem in Russia and poor trading at its golf business meant targets were no longer attainable.

For 2013, Adidas now expects sales to rise by a low single digit percentage, against previous expectations for a low-mid single digit gain.

It now sees net income of between €820m (£692m) and €850m, compared with a previous target for €890m-€920m, and an operating margin of around 8.5 per cent, down from near nine per cent.

The group, which is second behind market leader Nike in the $245bn (£152.8bn) global sportswear market, had already lowered its 2013 sales target last month after weak European trading and unfavourable currency movements hit second-quarter results.

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