Adidas shares drop after profit warning

Thursday 31 July 2014 17.56
Adidas recently took over from Nike as sponsors of Manchester United and was also sponsor to World Cup victors, Germany
Adidas recently took over from Nike as sponsors of Manchester United and was also sponsor to World Cup victors, Germany

Shares in Adidas dropped more than 10% after it issued a profit warning, adding that it would open fewer stores in Russia than it had planned.

It said net income for the year could be nearly a third lower than forecast. 

The company is now guiding net income for 2014 of around €650 million, down from an original target of €830m-930m.

Adidas is planning to reduce its expansion of stores in Russia, where the group has around a thousand stores already, and close more branches there.

Russia is one of the countries where Adidas has achieved a clear lead over its main rival, Nike.

The company is also to overhaul California-based golf brand TaylorMade, which makes golf bags, clubs and clothing for the US market after an 18% drop in sales.

Adidas recently took over from Nike as sponsors of Manchester United in a record $1.3 bn deal. It was also sponsor to World Cup victors, Germany.