Weak Sales In North America, Adidas Lowered Annual Expected Share Price Crash

　　 Europe Adidas AG (ADS.DE) Adidas group, the largest sporting goods manufacturer, released its two quarter and interim results yesterday. Due to the unstable situation in Russia and the reduced demand for golf equipment in the North American market, the net profit in the two quarter ended June 30, 2014 was 145 million euros, which was lower than analysts' expectations of 150 million euros, down 15.2% from the same period a year earlier, and 0.69 euros per share, a 16% drop from 0.82 euros in the same period last year.

News affected Adidas AG (ADS.DE) Adidas's stock price fell sharply after opening. The deadline for non stylish Chinese net publishing time decreased by 3.96%, to 55.79 euros, and so far this year, the decline was more than 40%. Half of them issued a profit warning at the end of last month, and the stock price dropped more than 20 in the past week after the announcement of earnings warning, which also had the worst performance of the German DAX index.

If Ying police expect, the two quarter Adidas AG (ADS.DE) Adidas's Taylor Made Adidas Golf brand revenue fell 21.9%, from 348 million euros in the same period last year to 272 million euros, the first half decline is 30.6%, from 771 million euros to 535 million euros. In the two quarter, sales in North America dropped 4.3%, from 826 million euros in the same period last year to 790 million euros, 1.3% higher than the fixed exchange rate. In the first half of the year, sales fell by 14.3%, from 1 billion 471 million euros to 1 billion 716 million euros. The fixed exchange rate fell by 9.7%.

suffer Golf The impact of product inventory, Adidas AG (ADS.DE) Adidas also lowered the whole year's expectations, and expected full year revenue growth to be in the middle to high single digit growth, which was expected to be a high digit growth rate. The gross profit margin was expected to be 48.5% to 49%, which was expected to be 49.5%-49.8%. At the same time, a sharp downward adjustment in operating margin to 6.5% to 7% was previously expected to be 8.5%-9.0%. Net profit in the current fiscal year is expected to slip to 650 million euros, which was expected to be 830 million euros and -9.3 billion euros.

Adidas AG (ADS.DE) Adidas CEO Herbert Hainer expressed disappointment at the sale and profit target of "Route 2015" next year, especially after a successful World Cup year. The group hoped that the total sales and operating profit rates in 2015 could reach 17 billion euros and 11% respectively.

In addition, Adidas AG (ADSn.DE) Adidas said that the Russian market, which accounts for more than 1 billion euros and one of the group's most lucrative markets, will slow down the expansion of new stores due to geopolitical crisis, while conducting a global strategy of closing stores.

The total revenue of Adidas AG (ADSn.DE) in the two quarter was 3 billion 465 million euros, up 2.4% from 3 billion 383 million euros in the same period last year, and other Asian markets other than China also showed a difficult performance. In the two quarter, it fell 5%, from 531 million euros in the same period last year to 504 million euros, and the fixed exchange rate increased by 0.2%. In the Greater China area, 387 million euros were accounted for, compared with the same period last year, 371 million euro growth was 371 million, the growth rate was fixed under the fixed exchange rate; the growth rate of Western European market was fixed, the fixed exchange rate increased from euro to euro in the same period last year; the European emerging market was affected by Russia, and the quarterly income declined from the euro in the same period last year to the euro in.

In the two quarter, Adidas AG (ADSn.DE) Adidas gross profit increased by 0.6% to 1 billion 704 million euros, 1 billion 694 million euros in the same period last year, and gross profit margin fell 90 basis points to 49.2%. Operating profit fell 12.7%, from 252 million euros in the same period last year to 220 million euros, and the operating profit rate dropped by 110 basis points to 6.3%. In the first half of fiscal year, Adidas AG (ADSn.DE) gross profit of Adidas fell 3.8% to 3 billion 440 million euros, 3 billion 575 million euros a year earlier, and gross margin fell 90 basis points to 49.2%. Operating profit in the first half of the year was 523 million euros, down 24.6% from 693 million euros in the same period last year, and the business profit rate dropped to 7.5%, or up to 220 basis points.

Adidas AG (ADSn.DE) recorded an overall revenue of 6 billion 998 million euros in the first half of, down 1.9% from 7 billion 134 million euros a year earlier.