2014 Performance Forecast Adidas Brand Lowered Expectations To Resume Growth

Adidas, Germany's Adidas, had to adjust its profit target last week, < p > < href= > http://sjfzxm.com/news/index_p.asp > Global > /a > second sporting goods company.

The company said recently that the cost of investment is rising and the restructuring plan is putting pressure on the company's operating margins.

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< p > the group has lowered its profit margin target: it is expected to be 6.5% to 7%, lower than the previous planned 8.5% to 9%.

In 2013, the company's profit margin was as high as 8.7%.

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P Herbert Hainer, President of the group, conducted a self-examination at a conference call.

He said Adidas's poor performance is also related to "strategic mistakes" in addition to external pressure.

In particular, "we have attacked our brands in some markets, which has made us lose some market share. Western Europe is a living example."

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< p > < a href= > http://sjfzxm.com/news/index_p.asp > > /a >, he said, "now is the time to increase our investment" so as to ensure that we have a place in the consumer market.

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< p > Herbert Hainer announced that the group will launch the most ambitious promotional advertisement in 2015, but he did not disclose specific data.

Adidas plans to increase marketing expenditure to 13% to 14% of total sales from now until 2015, higher than the current 12% to 13%.

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Besides, P also announced that it will start a new restructuring of its brand, sales structure and management from August this month.

But it does not want to reveal what impact it will have on employees.

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< p > as for external challenges, Herbert Hainer first mentioned foreign currency factors, especially the ruble's depreciation, which resulted in a loss of 100 million euro in the first half of this year.

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< p > > a href= "http://sjfzxm.com/news/index_p.asp" > golf < /a > business downturn also makes the TaylorMade brand suffer great losses.

Russia's geopolitical crisis has also led to a slowdown in the group's sales in this country.

Adidas also plans to reduce its sales at the local level. In 2014, the number of new stores was changed to 80, lower than the previous 150, and in 2015 it also planned to increase 80 new stores.

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Economic analysts at P, berlberger, Germany (Berenberg) think these plans are "unconvincing", while restructuring and investment costs will continue to affect the performance of accounts in 2015.

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P, however, the Dow Jones newswires quoted analysts from Germany's bard bank as saying Adidas has a sound capital base.

They pointed out that the sales volume of the two major brands of Adidas and Reebok in the second quarter, excluding foreign currencies, recorded an increase, while all the markets except North America increased.

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In July 31st, Adidas sharply lowered its performance forecast in 2014, with a net profit of only 650 million euros, much lower than previously expected 830 million to 930 million euros. P

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Less than P, it also abolished the target of 17 billion euros and 11% of operating profit by 2015.

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