PARIS — Adidas stock slid 15.4 percent in trading Thursday after the company lowered its full-year guidance.
Shares closed at 59.41 euros, or $79.67 at current exchange.
The company said Thursday morning currency fluctuations and high marketing costs linked to the FIFA World Cup dented its second-quarter sales.
Citing factors such as tensions in Russia and Ukraine, increasing marketing costs and the poor performance of the golf segment, Adidas said it now expects a mid- to high-single-digit increase in currency-neutral sales in 2014, after earlier predicting a high-single-digit rise.
In addition, it lowered its forecast for net profits to around 650 million euros, or $887 million, from a range of 830 million euros to 930 million euros, or $1.13 billion to $1.27 billion, previously. Adidas management postponed the delivery of its so-called Route 2015 targets at a meeting of the executive board, it said.
Sales rose 2 percent in the second quarter to 3.46 billion euros, or $4.75 billion. Stripping out the effect of foreign exchange rate variations, revenues were up 10 percent. Net income attributable to shareholders totaled 144 million, or $197 million, during the period.
Herbert Hainer, chief executive officer of the Herzogenaurach, Germany-based sporting goods firm, said it plans to clean up markets, focus on growth opportunities and revise its internal organization in a bid to return to “a higher and more consistent level of earnings growth” in the mid to long term.
“Everything we announced today has one objective: to strengthen our brands, to drive consumer desire, and to set our group up for long-term success. As we gear up for our next five-year strategic plan, we will assert ourselves much more aggressively in the marketplace,” he said.
“While we have delivered notable achievements with our Route 2015 plan, we also accept that we have not executed to our high standards at all times or provided enough flexibility to react in adverse market conditions. This we now tackle head on. The strength of our winning performance at the 2014 FIFA World Cup shows exactly what we are capable of when we execute flawlessly,” Hainer added.
Adidas is scheduled to publish full financial results for the first half on Aug. 7.
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion
“I’m Russian and I love to use all these little tricks that I got from my grandma or my mom. We didn’t have a lot of money for creams or anything like that so we would use a garden as a beauty treatment regime. We’d put cucumber in the fridge and do a cucumber mask,” says model @irinashayk on one of her beauty hacks. WWD asked celebs what their go-to self-care rituals are. See what Naomie Harris, Freida Pinto and more said on WWD.com. #wwdeye #wwdbeauty (📷: @zefashioninsider)
Exclusive: @viktorandrolf are teaming up with @Zalando on a collection made from leftover clothing. The lineup, which lands at the retailer February 1, includes 17 pieces adorned with sliced up and repurposed overstock from the retailer’s private label collection. Pictured here is a look from the collection –– see more on WWD.com. #wwdfashion #wwdnews
@duewestnyc is the newest bar joining the collection of intimate neighborhood-focused spaces in the West Village. The cocktail menu, which includes bitters and syrups made in-house, offers a “Build Your Own Old-Fashioned” – like the one pictured here – where guests can choose from a list of spirits and unexpected sugars and bitters. #wwdeye
Spotted at last night’s National Board of Review gala in NYC: Angelina Jolie. Jolie – along with Meryl Streep, @lupitanyongo and more – continued the all-black dress code from Sunday’s Golden Globes. #wwdeye (📷: @lexieblacklock)