(Boursier.com) — Adidas fall of nearly 9% to 104 euros in Frankfurt. The sporting goods giant issued a profit warning – its second in three months – to take into account deteriorating traffic patterns in stores in Greater China, and a large inventory build-up amid slowing economic growth. demand in Western markets since September. The brand with the three stripes is now expecting growth, excluding currency effects, of around 5%, against 5% to 10% previously. The operating margin is expected at 4% against 7% previously. The company also said its annual profits would be eroded by about €500 million in one-time costs related to issues such as the end of its operations in Russia.
Based on preliminary figures, revenue grew 4% (excluding currency effect) in the third quarter despite a strong double-digit decline in Greater China, reflecting continued widespread Covid-19 related restrictions as well as significant inventory reversals. Gross margin decreased by 1 percentage point, to 49.1%, and operating margin reached 8.8%, against 11.7% a year earlier. Finally, net income from continuing operations amounted to 179 ME against 479 ME.
With Kasper Rorsted set to jump ship next year, there’s no shortage of work for Adidas’ next CEO.
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