Weaker currencies, Russian move and weak golfing market
The
Russian, Japanese, Brazilian, Argentinian, Australian and Turkish currencies
have lost worth compared to the euro, states Adidas. That should have a ‘high-single-digit
percentage’ negative effect on third quarter results.
Another
reason for the lower goals is distribution having moved to a new warehouse near
Moscow, limiting third quarter distribution temporarily. This in turn means
that the financials goals for Russia and the former Soviet states can no longer
be achieved, a problem that will be remedied by the start of the fourth
quarter.
The weak golf sportswear market and Adidas’ specific golfing brand Taylormade’s focus on preserving a “healthy level of
stock” mean that this section of the market had lower turnover and profits.
Lowered
turnover and net profit expectations
Adidas
has now lowered its profit expectations from between 890 and 920 million euro
to a number between 820 and 850 million euro. Excluding exchange rate effects,
Adidas expects a low-single-digit turnover increase, whereas it previously had
expectations to possibly reach a ‘mid-single-digit’ increase.
Particularly
the third quarter results will turn out to be negative, while Adidas expects a
healthy fourth quarter recovery. It will announced its results for the first nine months of 2013
on 7 November.
