Adidas cuts sales forecast on Reebok
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Germany's Adidas trimmed its 2012 sales forecast on Thursday due to weaker-than-expected business at its Reebok and Rockport brands, as it met third-quarter profit forecasts.
The world's second-largest sportswear firm after Nike said it now expected 2012 sales to increase by a high single-digit percent, compared with its previous forecast for a rise of almost 10 percent.
Its shares, which have gained 30 percent this year, were indicated down 1.1 percent. Adidas has lowered sales forecasts - investors don't like to hear that, said one trader. Adidas has so far performed better than rivals Nike and Puma this year. But one black mark on its record has been Reebok, which is battling slumping sales and reorganising its Indian operations after fraud was uncovered there earlier this year.
Reebok sales declined by 25 percent in the third quarter, following a 26 percent fall in the second quarter.
Adidas slashed its forecast for Reebok sales in 2015 by one-third in September to 2 billion euros..
The group still aims to increase overall sales to 17 billion euros in 2015 thanks to better than expected growth at its Adidas brand and TaylorMade Golf division.
Adidas said on Thursday it expected to grow sales and earnings to record levels in 2013. We will grow our top line, improve our operating margin to around 9 percent, and deliver another year of significant double-digit earnings growth, Chief Executive Herbert Hainer said in a statement.
It reported third quarter operating profit of 494 million euros and sales up 4 percent to 4.17 billion euros ($5.3 billion), in line with analyst expectations for 490 million euros and 4.16 billion.
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