Adidas Sports Brand Twice Lowered Annual Report Expectations

< p > following the announcement of its not beautiful mid term performance in August and the reduction of its forecast sales volume, the German sports giant Adidas has again indicated that due to the decline in the exchange rate of some countries' currencies against the euro, the performance guidelines for the whole fiscal year will be lowered. < /p >
In the industry's view, < < a href= > http://www.91se91.com/news/index_f.asp > > Adidas > /a > the two time in the year, P has lowered its performance forecast, which reflects the gradual deterioration of the market environment and the performance of the emerging market, especially the Chinese market, is not as good as expected or the main factor. < /p >
< p > analysts told reporters that the expected performance decline is not the end of the day, and its performance will be affected once the vitality of the brand in the Chinese market can not be maintained. < /p >
< p > < strong > twice lowered performance forecast < /strong > /p >
< p > Adidas said its annual revenue growth dropped to a single digit, and its operating profit margin dropped from 9% in August to 8.5%. In addition, it also 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. < /p >
In a statement issued in August, 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. < /p >
When P released its 2012 annual performance data at the beginning of this year, Adidas also predicted that the Group sales revenue in 2013 would maintain a median growth rate. However, the distance from this prediction seems to be getting farther and farther away. < /p >
< p > 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 earnings report, which was negatively affected by the exchange rate, especially in the fourth largest market of the group. 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. < /p >
< p > Adidas CEO a href= http://www.91se91.com/pioneer/ > Herbert Haina /a > (HerbertHainer) stated in the statement that Adidas faces "increasing resistance" in the short term. < /p >
< p > however, interest rate is only one factor in Zhang Qing, the founder of sports consulting firm. "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." < /p >
< p > in Zhang Qing's view, the movement of the whole industry is in an irreversible trend. "It is an early warning, releasing bad news ahead of schedule, and avoiding the ups and downs of stock prices after the performance comes out." He said. < /p >
< p > < strong > market encounter ceiling < /strong > /p >
< p > CIC retail industry researcher a href= "http://www.91se91.com/pioneer/" > Du Yan Hong < /a > pointed out to reporters that Adidas's two annual performance forecast has been reduced, reflecting the gradual deterioration of the market environment, and the growth of company performance will slow down. < /p >
< p > Adidas's mid term report released 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 2013 quarter. 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. < /p >
< p > but clearly, 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. < /p >
"P" has been driving the performance of Adidas Greater China "sports performance" and "sports fashion" series products, is facing fast fashion brand and other sports brand transformation sniper, "the rise and development of domestic fast fashion is also nibbling the Adidas market." Du Yanhong said. < /p >
< p > 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 sport lifestyle in a real sense." < /p >
At the moment, in the low tide of China's market sports industry, Nike is weaker than Adidas in the first place. P "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. < /p >