Behind Adidas'S Performance Forecast

Following the announcement of August's not beautiful medium-term performance and the reduction of its forecast sales volume, the German sports giant recently Adidas It is once again indicated that the decline in the exchange rate of some countries' currencies against the euro will reduce the performance guidelines for the full fiscal year.

In the industry's view, the two performance reduction forecast in the year of Adidas reflects the gradual deterioration of the market environment, and the performance of emerging markets, especially the Chinese market, is not as good as expected or the main factor.

Analysts told reporters that the expected performance decline is not the end of the day. Once the vitality of the brand in the Chinese market can not be maintained, its performance will be affected.

　　 Twice forecast to reduce performance

Adidas said its annual revenue growth dropped to single digits, and its operating profit margin dropped from 9% in August to 8.5%. In addition, it expected net profit to grow by a median figure of 820 million to 850 million euros, a decrease of 70 million euros from the previous 890 million to 920 million euros.

In a statement released abroad, Adidas explained that many currencies depreciated against the euro from August to September this year, and the weak trend of these currencies will have a significant negative impact on the three quarter results. In addition, its new distribution center in Chekhov, Russia, failed to supply new products to retail stores as planned, and the slowdown in the global golf market was the reason why the group adjusted its annual performance expectations.

At the beginning of this year, when the 2012 annual performance data were released, Adidas also predicted that the sales revenue of the group in 2013 would maintain a median growth rate. However, the distance from this prediction seems to be getting farther and farther away.

It is worth noting that this reduction of annual performance forecasts is not the first time. At the beginning of August, Adidas announced its two quarter financial report, which was noted that exchange rate The negative effects, especially in the fourth largest markets of the group, have been reduced in Japan. For this reason, it is expected that sales volume in 2013 will grow at the level of low units to medium units without considering exchange rate fluctuations.

Herbert Heiner, chief executive of Adidas, said in a statement that Adidas faces "increasing resistance" in the short term. "HerbertHainer"

However, in the key way, Zhang Qing, founder of sports consulting firm, sees interest rates as a factor. "Adidas's performance in emerging markets, especially in the Chinese market, is less optimistic than expected, and I'm afraid that's the main factor."

In Zhang Qing's view, the whole sports industry is in an irreversible trend. "It is an early warning, releasing bad news ahead of schedule, and avoiding the stock price ups and downs after the performance." He said.

　　 Market encounter ceiling

Du Yanhong, a retail researcher at CIC, pointed out to reporters that Adidas's two annual downgrade forecast reflects the gradual deterioration of the market environment and the slow growth of the company's performance.

The 2013 annual report released by Adidas last month showed that in the first half of the year, its global net sales decreased by 3% compared with the same period last year, of which one or two quarter sales fell by 2% and 3.8% respectively. In the first half of this year, the sales performance of Adidas in other parts of the world declined in varying degrees except for the Greater China region and Latin America.

But obviously, the push in the Chinese market is slowing down. According to the exchange rate unchanged, the sales revenue of the Greater China region increased by 6% in the first half of this year, far below the 19% growth rate of the same period last year.

The "sports performance" and "sports fashion" products that have been driving the performance of Adidas Greater China are being attacked by the transformation of fast fashion brands and other sports brands. "The rise and development of domestic fast fashion is also eating the Adidas market." Du Yanhong said.

　　 clothing Industry analysts told reporters that the Chinese market is changing. In terms of product launches, ADI needs to keep on active and communicate with young people. "Especially for the Chinese market, we must promote the popularization of sports lifestyle in a real sense."

At the moment, in the low tide of China's market movement industry, Nike is weaker than Adidas. "The expected reduction of ADI's performance today is not the end. If we can not maintain the vitality of the brand in the Chinese market, the performance will also be affected." Zhang Qing pointed out.