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"Costs" For Who? Adidas Drops Most Ever After Slashing Guidance: Blames Russia
It would appear "Russia" is the new "weather" when it comes to missed earnings expectations. As Bloomberg reports, Adidas shares fell by a record after the world’s second-largest sporting-goods maker slashed its full-year profit forecast, bursting euphoria around the German company less than a month after its national team’s victory in the World Cup. The reason, aside from golf, "turmoil in Russia," which just happens to be its most profitable region. But Jack Lew promised that there would be no impact?
Adidas said profit this year will miss its forecast by at least 180 million euros ($241 million). The shoemaker and apparel maker scrapped a long-standing growth target for next year, citing a slump in demand for golf supplies in North America combined with turmoil in Russia. The shares tumbled as much as 16 percent in Frankfurt trading, the biggest intraday drop since the company’s 1995 initial public offering.
“You could argue they’ve been a victim of their own success,” said John Guy, an analyst at Berenberg Bank in London who recommends buying the shares. “Russia is one of their most profitable regions,” and now a dispute with Ukraine and economic sanctions against Russia are weighing on the outlook.
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Net income this year will be about 650 million euros, Herzogenaurach, Germany-based Adidas said in a statement, down from the earnings of 830 million euros to 930 million euros the company had previously anticipated.
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Adidas said it plans to close stores and delay openings in Russia, a market where 2013 sales exceeded 1 billion euros. Adidas had previously planned to end this year with more than 100 net new stores, spokeswoman Katja Schreiber said.
The company had named Russia and the former Soviet countries one of its three “attack markets,” which were supposed to contribute about half of the company’s sales growth.
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Who could have seen this coming in what Putin called the 'interconnected world'? It would seem the Europeans will soon be asking Washington to stop with the "costs"...
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What? Did the Russians stop buying sneakers? WTF?
the shares fell by 10 points and its the largest drop ever.... talk about price stability. The stock would be a buck if it was listed in the US
MY aaaaDEdas.
-Run DMC
>> Did the Russians stop buying sneakers? <<
They figured out they can buy them factory direct from china for $5 a pair with an extra pair of laces tossed in.
Putin on the risk.
"Putin on the risk" good one.. :-D
and.. “victim of their own success”
Yeah like all of us thanks to the enlightened leadership of the greedy and arrogant bastards in .gov.
I absolutely hate the concept of a "victim of their own success". What does that actually mean? They got their stats way up and then failed to sustain it, or at least identify some one-time surge. Couching this like success is a bad thing--seriously? You either lied or had dereliction of duty. But looking at their chart since the start of the year, there's nothing there that says "buy".
I suspect the newly homeless people all over the world are discovering they can get by without their canary Kobi's
http://www.ealuxe.com/most-expensive-basketball-shoes-world/5/
You can't possibly blame a "Russian situation" for these numbers. They would not only have completely stopped buying (and from 6 mos ago as the supply chain timeline runs) but also likely set fire to stores and declared a full "sneaker jihad".
Let's face it, the estimates numbers were really bad, nobody even tried to correct earlier. This is nothing more than incompetence at the exec level. Rather surprising for the Germans, who are famously accurate.
Did the Russians stop buying sneakers? Winter is coming. They're gonna need ugg boots soon, not sneakers!
See! You can still blame winter!
I don't understand it either - nobody said they couldn't send their stuff to Russia. What "turmoil" in Russia?
mcd,pep and many other US companies will be shut out of China and Russia, replaced with national companies after stealing all trade secrets.
So is this an implosion based on forward guidance based on potential sanctions boomerganing and or world war 3? Funny zh is making light of the potential of this geo political conflict which could literally go nuclear, all for a broke country, while they played up the ISIS thing like it was the end of civilization.
HYUCK HYUCK.
Pretty sure you won't hear about many people not having the discretionary income to play golf in their earnings report.
Jack Lew promised there would be no adverse impact - to israel likely.
"It would seem the Europeans will soon be asking Washington to stop with the "costs"..."
Look, if you want to keep getting led around by the nose, go ahead and keep working with DC. But one thing I can assure you is that the "costs" of doing so will NOT decrease.
I didn't do my homework because Putin... russia... and America who is sticking it's nose in a ass that it doesn't belong to....
Russians reject the Nike marketing. Go Russia!, just do it.
Europe will dig more and more...and when they will think they at bottom someone will knock from below
Haha. That's like KFC cutting guidance and blaming it on black people. For those who don't know, there's a stereotype that Russians always wear track pants.
https://answers.yahoo.com/question/index?qid=20100824135211AACDLXf
Don't they? Wow, I learned something new today. I thought they all stumbled around all day drunk on vodka too.
Adidas is massively popular in Russia and Ukraine. Have you seen how many sportswear shops there are? A hell of a lot.
The market in Ukraine and Russia for Adidas is enormous.
Putin is a tactician vs Obama, a community organizer.
Guess who's going to win in the long term?
Barry is out-classed.
Putin practices the art of Judo (http://en.wikipedia.org/wiki/Judo) and is therefore a Judoka...
While Obama puts little white balls into little black holes
Barry is a sock puppet. Think of him like Bert from Sesame St. but with less personality. I make my fair share of cracks on the sock puppet but I know he isn't in charge. TOTUS (deep state if you will) is in charge. I have never liked the checkers vs chess analogy. While it is true when talking about Barry, it is not when talking about TOTUS. It is smart but terribly overconfident. They have to defend the petrodollar or they are cooked.
It's not a stereotype.
Is this the same Adidas that just signed a sponsorship deal with Man Utd. 750 million pounds over 10 years.
Everyone on earth knows the adidas brand. It's rammed down your throat just like that god-awful nike garbage.
To pay three quarters of a billion dollars to dress up some football team is an absolute laugher.
I bought a nice comfy pair of Chinese Costco sneakers for $15.00.
They don't look half too bad either.
I can have at new pair of sneakers each year for 5 years or more for the price of a single pair of Addidas or Nikes.
I guess the Russians just figured the trick too...
I almost bought a 4 pack of Adidas polo shirts on Ebay for $41.00. I got outbid at the last second.
Europe, already declining, will be begging Putin soon after he ramps up natural gas prices and squeezes the socialist.
Barry's plan is sure backfiring. He should use his brain instead of flapping his Chicago big mouth.
Please, Barry's plan is and has always been to destroy the western economy as it was and re-build it with a new world currency. I'd say things are going according to plan.
I would also suggest that it is part of his plan to dilute the populatrion with minorities, thereby getting some of the power out of whitey's hands.
He's quite good with the destruction part. Not so sure about reconstruction though... Looks like some BRICS might have a different idea.
Reading from Reuters ~ "Ukrainian military spokesman Andriy Lysenko said the rebels were digging in for battle near the crash site: "They have brought a large number of heavy artillery there and mined approaches to this area. This makes impossible the work of international experts trying to start work to establish the reasons behind the Boeing 777 crash."
http://mobile.reuters.com/article/idUSKBN0FZ1JF20140731?irpc=932
I think the evidence is pointing to the Ukrainion Air Force tactics of incorporating unsuspecting air carriers for the purpose of "human shields" and yet the vigilant attacks on Russia persist?
whoa, whoa, whoa. everybody knows russians LOVE adidas. how many movies have you seen where the russian mobsters are decked out in tracksuits? all adidas. life imitates art.
this is nothing like that bullshit "weather" excuse, this is for real, and anybody could have seen that coming.
Everything in Europe is insanely expensive. I don't see how anyone who makes less than €200,000/yr can have quality life in a big European city comparable with about $120,000 in USA.
we have, generally speaking, a more modest lifestyle. Spartan, compared with the American standards. but quality is not quantity, imho
we spend, for example, less time commuting or working. we eat more at home, less out or prepackaged or brought in food. our living/home space is smaller, we burn half as much oil per capita, and so on
If you measure quality of life in tire smoking dually fun, you guys are just fucked.
https://www.youtube.com/watch?v=Z20ge6gJcyw
LOL. "All pedal on POSi pull out .Gear Shifting Burnout 10,000lbs truck ,Ford F-450 6.4 King Boosted Burnout TheTrain®™ H&S Tuner on 300HD TUNE Rolling Coal"
absolutely. try that in most of Europe and you risk getting lynched, fined, tarred and feathered
which is strange if you think that we have also roads (in Germany only, though) where there is no freaking speed limit whatsoever
my personal record was 325 Km/h (and I still shudder when I think about that night)
Congratulations ! That's usually a speed where pretty much everything takes off...
That's a good (and lasting) sign of redneck retardation, right there.
You should try it. Small is beautiful.
We Americans are collectively brainwashed into believing happiness is tied to a McMansion full of plastic made in China iShit, gigantic refrigerators full of frozen processed Monsanto Solent Green and shitty big cars financed with debt.
Once you free yourself from that consumerist walled garden, there is no turning back.
This is not to say the rest of the fiat world is enlightened; practically speaking, they just don't have the space for it.
Amen William. Back in post-war America, the avg home size was about 1200 sq ft. This comfortably fits a family of 4. Now I hear co-workers complaining that a 2500 sq ft house for *2* people is not enough! And the cars...I see folks perpertually spending $400-600/mo on payments, 'cos of course ya gotta get a new car every 3-5 yrs. No need to put that money into retirement savings or paying down your mortgage. Hmm, wonder why their 70s and beyond might look kinda grim.
Yeah, really look at your purchases and the philosphy behind them.
.
Potato, they can always move out of the expensive places, live in a more modest home, drive a less expensive car, and generally quit feeding the debt monster.
I remembered eating breakfast in Barcelona 3 years ago, I don't see how they can afford like $6-8 Euro meal consisting of small fried 2 eggs and ham and how these places can stay in business.
Not sure if Bourdain being here on a show jacked up the prices...but overall, it wasn't cheap to eat even comparing to NYC.
A bit o/t, but maybe there are some green shoots:
Former US Intel Officers Warn President Obama on US Actions Against Russia
Duffy A bit o/t, but maybe there are some green shoots:
Former US Intel Officers Warn President Obama on US Actions Against Russia
----
News flash to those un intelligent officers. Obummer doesn't give a F ck.
But,
I thought Germany and Russia were new best-buds?
Joining forces?
De-Merkel'ed and Putinized?
Because cult of personality was a good thing?
Give it a bit of time. Last time I checked, Merkel had a minority government... Coolness (as in weather AND economy related) can do wonders to the most stuborn minds...
I love the Adidas Rev30 NBA Jerseys.
divide and rule. working as good as 2000 years ago. the trickster who is behind it is out of the news
MSFT gonna beng swirling in the toilet bowl we call a stock market soon as well. Mother Russia does not want puny Amerikan software!
China is not happy with MSFT either. MSFT needs government and corporate contracts.
I guess anything Obama touches turns to shit. When Eisenhower played golf, it encouraged an entire generation to to learn the game.
I think regular golfers pick up on the fact that Obama is a fucking hacker that doesn't repair his divots.
He had Biden fix all the plugs.
This is tangible. And suddenly earnings matter? Not good for this house of paint we call a stock market.
what of the mighty cia saidi jewish isis brigades think those millions of kosher numeracy loving satanist actors in sneakers.
did we not see a million men in the desert in addihash white sneekers.
shirley missus the slack of putnik sales is more than made up for with the million strong isis hollywood psy army of tel aviv
They were Chinese copies, Jihadi/bangers dont pay license fees
Russia problems had this big of an impact on earnings in such a short time? Really. What exactly has been impacted that would harm earnings of any company in just a couple of weeks other than say Malaysian airlines. Now I could see them being impacted a great deal. Anyone else claiming damage is farcical. Now the excuses begin as to why the market will crater never mind the real reason, assuming the Fed discontinues artificial support.
People tend to forget that, while the market was seen as a boon for Clinton, by the time he left office the Nasdaq was off by more than 50%. He got the benefit of the internet roll out and the bogus Y2K paranoia but for reasons I still can't fathom doesn't get any of the stink of the collapse and loss of all that phantom wealth and the realization that most of the jobs he got credit for "creating" were in fact as temporary as the paper wealth held by so many internet millionaires. The list of companies that had astronomical stock prices in late 1998 that disappeared by the beginning of 2000 is truly mind boggling.
I've never owned an adidas.
Russians do love those Adidas track suits..
Big soccer market, Russian got those big slav feet that fit Adidas
BOOM ( erang)
Hey it is the new seasonal paradigm - the Russian Winter in Summer (blame it on the weather)!! Keep in mind that during the filming of Dr. Zhivago they had to paint the leaves white when they filmed the winter scene (the actors were perspiring in fur coats as they departed in their sleigh) during the Spanish summer... Anything can happen now.
http://www.outofthepastblog.com/2010/05/doctor-zhivago-1965-45th-anniver...