Adidas Goes Downhill Not Only Because It Is Ugly.

If you think of the young people in the streets of the United States in 1970s who are wearing cool sports shoes with three bars marked, Adidas's situation is even more desolate. In 2014, Adidas lost to Under Armour in the North American market for the first time in third place. In the Chinese market, its performance in recent years is far less than that of New Balance, and the gap between its brand appeal and its old rival Nike is bigger and bigger.

The share price fell 38% in the whole year and a huge loss of 140 million euros in the single quarter. Adidas's report card in the 2014 fiscal year was rather bad. "In 2014, we experienced ups and downs, and in the 2015 year, all sales of our brands will grow." After the annual report, CEO Herbert Hainer (Herbert Hainer) on the 26 day of the investor relations day in March, it again raised the target of an average annual revenue growth of 15% and an average annual net profit growth of 6%-9% before 2020.

The veteran employee who has worked in Adidas for 15 years has not given a detailed implementation plan to achieve this goal, but he may be worried. What we see most recently is that Adidas launched a classic shell shoe Superstar with 50 colors and optional colors. It seems that Adidas will become more radical and open.

Conservative, slow response, and design have been criticized by Adidas before. But so far, how much money have been lost?

In the fourth quarter of 2014, Adidas had a loss of up to 140 million euros, which is equivalent to nearly half a year's income from its headquarters and the town of hegso in the German town.

Such performance also dragged down Adidas's annual performance: 490 million euro's net profit fell 37.7% year on year, even if it did not take account of goodwill, it failed to achieve the annual target of 6.5 billion billion euros. If the target was lowered in mid 2014, it would be even more serious.

Fortunately, the group's total income maintained a slight upward trend, rising from 14 billion 203 million euros in 2013 to 145.34 billion billion euros in 2014, an increase of 2%. This is also a figure Adidas is more willing to discuss, benefiting from the Brazil World Cup and the Champions League, in addition to the North American market, the other regional markets in the world in 2014 have achieved sales growth.

But over the past 5 years, Adidas's sales have fluctuated and there is not a handsome growth curve. In general, profits are also going downhill: 564 million euros in 2014, lower than 2010 euros in 568 million euros.

In March 20th, Nike Also released the 2015 quarter of fiscal year third quarter earnings: quarterly profit growth of 17% to 89 cents per share, sales grew 7% to 7 billion 500 million U.S. dollars. CEO Mark Parker still attributed such strong growth to the trend of product innovation for global sportswear and footwear.

Affected by the news, Nike's share price rose 4.8%, even pulling its standard & Poor's 500 index in the pre trading day of the earnings announcement. Prior to that, Nike's stock price hit a high level of 99.76 US dollars in November 2014, 28 yen day. If we compare Nike with Adidas's stock price chart, we can see that the two companies have maintained a basically consistent growth trend, but after 2014 years, the stock price gap is getting bigger and bigger.

In the North American market, another fast-growing brand Under Armour has been mentioned. After 18 consecutive months of revenue growth of more than 20%, it finally surpassed Adidas in the second half of 2014 and became the second largest sports brand in the US market. In 2014, the total revenue of Under Armour exceeded 30 billion dollars, and the brand remained two times the price growth rate of Nike in the stock market.

While in Adidas The European market of the base camp, which is occasionally compared with the sports brand Puma (Puma), can also get a glimpse of its parent company's Open Cloud group's earnings report: in the 2014 year of the year, the total revenue of Kai Yun group exceeded 10 billion euros, of which Puma contributed 2 billion 990 million euros.

Let's take a closer look: in the past 3 years, Nike has maintained an average profit margin of 10.07%, Under Armour 6.76%, Adidas only 4.26%.