Currency Exchange Rate Impact On Adidas'S Sales

< p > sporting goods firm Adidas said it may change its business model to make up for the impact of currency exchange rate on the company's revenue and annual sales forecasts, and does not exclude the opportunity to consider purchasing locally.

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< p > after Adidas Adidas warned that its 2014 performance would be affected by exchange rate changes, the company's share price fell by 0.78% in March 5th.

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< p > by the currency < a href= "http://www.91se91.com/news/index_s.asp" > exchange rate < /a >, Adidas lost 9 percentage points in the fourth quarter, while the total income of the group grew 3% to 3 billion 480 million euros, but it increased 12% on the basis of monetary neutrality (Currency-neutral basis).

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< p > Adidas therefore said that although the World Cup football games will drive revenue, the decline in emerging market currencies such as Russia and Argentina will affect the performance of the company in the fiscal year 2014.

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< p > Adidas Financial Secretary Robin Stalker said that the company's annual performance was deteriorated by the impact of exchange rate, and it is expected that these "uncontrollable and negative effects" will continue until 2014.

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< p > "from today's perspective, the outlook for 2014 is bleak..."

Considering all the factors, if the situation has not changed, the situation in 2014 will be as bad as that in 2013, which will have a negative impact on the median sales growth rate.

In addition, the serious depreciation of the currency has brought the pressure of gross profit reduction to Adidas in 2014, "Robin Stalker said at the earnings analysis conference.

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< p > taking into account the above factors, the impact has been revealed in the 2014 a accounting year's expected < a href= "http://www.91se91.com" > Sales < /a >, that is, Adidas predicts that sales will grow into a high single digit figure, with net income reaching 830 million euros to 930 million euros, and the net income is lower than the 1 billion euros forecast by Bloomberg analysts.

The operating rate is between 8.5% and 9%.

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< p > < strong > changing operation mode < /strong > /p >

< p > Robin Stalker said: "generally speaking, we can make up for the short term problems caused by currency exchange rate, but rest assured that we will try to remedy it".

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< p > "for example, if the market is business conscious and consumers can accept it, we will selectively increase the price of the product."

In the market where currency exchange rate pressure still exists, we will strategically prioritize business importance or change business models.

As for other markets, it is possible to combine all the above ways for a period of time to protect and develop the long-term market position of the company.

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< p > these operational changes require Adidas to consider its various operating units and reconsider the investment.

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< p > "what are we investing in? Should we invest? This needs to consider what the product mix we want to sell is, maybe we can buy locally (when we review where to buy products), consider our distribution type, and continue to think about what we should do to make the cost more efficient."

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< p > Robin Stalker believes that these methods can improve the operation mode and market competitiveness of Adidas.

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P > although affected by the exchange rate of emerging market currencies in 2013, Robin Stalker believes that it is a good year for the operation of Adidas, as some important strategic plans in the 2015 business plan (Route 2015) have progressed.

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The "P 2015" strategic plan, which was put forward in 2010 for a period of 5 years, was put forward in 2010. It forecasts that the sales volume in 2015 will be 17 billion euros (about 23 billion 100 million US dollars) and the operating profit is 11%.

The purpose of the plan is to prepare and pform Adidas in pursuit of long-term sustainable growth and successful operation.

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"P", but he added: "although we are strikingly committed and focused on long-term sustainable growth and the improvement of profits and the increase in gross margins, it is quite encouraging, but unfortunately, the foreign exchange issue and the overall economic environment will continue to affect our financial statements".

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< p > < strong > unstable Russian market < /strong > /p >

< p > due to the negative impact of the Russian rouble depreciation on Adidas, < a href= "http://www.91se91.com/news/index_f.asp" > Adidas < /a > indicates that it has re examined its exhibition plan in the country.

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< p > currency exchange rate is not the only problem Adidas encountered in Russia.

In September 2013, there was a question of distribution restrictions in the Russian Chekhov market, which delayed the delivery of Adidas new products to various stores. Adidas therefore lowered its annual performance forecast.

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< p > referring to the deteriorating Russian political situation and its impact on the operation of the region, Adidas CEO Herber Hainer said the impact was very small.

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"P >" our warehouse is fully operational, and more than 1000 stores in Russia also have our products.

At present, the business operation in Russia is all good, and political problems have not caused any negative effects.

Of course, it is best if war problems can be settled peacefully, because consumers will be nervous when war happens, but there is no effect at present.

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< p > Herber Hainer says Adidas will "watch the situation carefully" and contact the management departments in Russia daily.

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"P >" in order to prevent the expansion of the conflict between Russia and Ukraine, we will also consider carefully the quantity of products in the warehouse.

Russia is the main market for Adidas, while less than 10% of adidias's operations in Russia are related to Ukraine's operation.

All stores are open as usual, but we will contact the management department everyday, not only can we quickly adjust the wiring of products, but we are also ready.

On the other hand, we want to continue to operate in Russia, and Russian consumers are buying our a href= "http://www.91se91.com/news/index_f.asp" product as /a as before.

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< p > summarizing Herber Hainer's remarks, he is optimistic about the overall performance of Adidas.

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< p > "we may not be able to achieve the ambitious goals originally set, but adidas has a brilliant performance in the fourth quarter. We are proud of it. In 2014, Adidas will also try to produce bright report cards."

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