Sports brand Adidas has slashed its 2015 sales target for the Reebok brand to €2bn (£1.2bn), while boosting its own sales forecast.
Adidas cited the loss of a major American football contract as reason for the forecast cut. Fraud was also discovered at its Indian operation, and restricting there would cost Adidas almost €200m.
The world’s second-biggest sporting goods maker increased its sales targets to €12.8bn, up five per cent from previous estimates.
Sales at Reebok slumped 26 per cent in the second quarter and annual revenue is expected to fall from 2011's €1.9bn. Its performance contrasts sharply with the rest of the Adidas group, which expects overall sales to rise nearly 10 per cent in 2012.
City A.M. Reporter