Russia, golf business land Adidas profits in the rough

5th March 2015, Comments 0 comments

Adidas, the German maker of sportswear and equipment, said Thursday that economic turbulence in Russia and difficulties in its golfing sector were partly behind a fall in net profit last year.

The group, which was also buffeted by negative currency effects and one-off charges over the sale of its Rockport sport shoe brand, said however it saw a brighter outlook for 2015.

For this year, it forecasts net profit increasing by seven to 10 percent and has maintained its sales growth targets.

Net profit slumped more than 37 percent in 2014 compared to the previous year, to 490 million euros ($541 million), well below the 642 million euros pencilled in by financial services agency FactSet.

Sales grew by 2.3 percent to 14.5 billion euros, said the group which has been hit by the falling ruble in its key market of Russia.

"2014 was a year with ups and downs for the Adidas group," chief executive Herbert Hainer said in a statement.

"But we tackled the challenges resolutely and achieved our adjusted top- and bottom-line targets," he said.


© 2015 AFP

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