Adidas profits plunge 93%
Adidas suffered a 93% plunge in profits in its second quarter as the downturn continues to take its toll on consumer spending.
In the three months to the end of June, net profit at Adidas fell to £7.7m from £98.6m last year, mainly due to a lower operating profit which has been hit by currency devaluation effects.
Group sales fell 8% on a currency neutral basis for the period after a decline across all its brands except golf brand TaylorMade-adidas.
Adidas group chairman and chief executive Herbert Hainer was more confident however for its second half. “The good news is that we did not see any fundamental deterioration in our business,” he said.
He added: “Our financials for the first half of 2009 are exactly in line with the guidance we provided in May – if not a little better. As a result, I believe we have seen the bottom in our financial performance this year.”
In its first half, Adidas group revenues fell 2 per cent to £4.2bn.