Adidas lowers 2014 profit target, citing risks in Russian market and weakness in golf sector
Sports equipment maker Adidas has lowered its full-year profit target, citing risks in the Russian market and weakness at its golf business.
Adidas AG, based in Herzogenaurach, Germany, said Thursday it now expects net profit of about 650 million euros ($870 million) this year, down from its previous forecast of between 830 and 930 million euros.
The company cited "higher risks to the short-term profitability contribution from Russia" and other former Soviet republics as a result of a weakening ruble and "increasing risks to consumer sentiment" in the region amid mounting tension over Russia's actions in Ukraine. Adidas said it has decided to "significantly reduce" its short-term store opening plan in the region.
Adidas also cited "poor retail sentiment and the slow liquidation of old inventory" at its golf business.