Golf and tension in Russia hurt adidas
01/08/2014
For the second quarter, it said sales had increased by 10% on a currency-neutral basis, driven by 14% growth at adidas and 9% growth at Reebok, but sales at TaylorMade-adidas Golf declined by 18% after what the group called “poor retail sentiment and the slow liquidation of old inventory”.
Adidas said it would take further measures to reduce inventory in the golf marketplace in the second half of 2014 and begin a restructuring programme at TaylorMade-adidas Golf.
Another factor it pointed to is the “risks to consumer sentiment” in Russia and the surrounding region, where there is ongoing tension, particularly in Ukraine. Adidas has decided to reduce significantly its store opening plan in this region for 2014 and 2015, and to carry out a number of store closures, although it said it remains “very encouraged by increasing brand momentum for both adidas and Reebok” as a result of local marketing investments and improving store operations.
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