Adidas is to cut back on its growth plans across Russia and close some existing stores, blaming the increased uncertainty in the country for falling income.
The sports brand has revised its financial guidance for 2014 and said net income would be around €650m (£515m) rather than the €830m to €930m (£658m to £737m) originally hoped for. Shares in Adidas fell 16% on Thursday as it said both increasing tensions in Ukraine and a high marketing spend on the World Cup had affected growth.
The German sports giant did not indicate how many stores would be closed, or when the closure could take place.
The declining strength of the rouble has also contributed to the brand’s decision to slow growth in Russia, the company said in a statement. It has around 1,000 stores in the country.
“We accept that we have not executed to our high standards at all times or provided enough flexibility to react in adverse market conditions,” Adidas chief executive Herbert Hainer said.