Adidas Net Profit Plunged 21% In The First Three Quarters, Down Gross Margin

The US market has been surpassed by emerging brands, and it is also a microcosm of Adidas's brand development.

Adidas's latest three quarter results, the group's revenue grew by 9% year-on-year, net profit fell 10.8% to 282 million euros.

According to the exchange rate unchanged, sales revenue of Adidas group increased by 6% in the first three quarters of 2014 compared with the same period last year, while net income fell to 630 million euros from 796 million euros in the same period last year, representing a 21% decline.

Meanwhile, Adidas continued to cut its gross profit margin this year.

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As a result, the sales revenue of Adidas brand in the three quarter increased by 12% year-on-year, thanks to the increase in double-digit sales revenue of sports performance series football category and running category products and the promotion of Adidas classic series clover and sports fashion series.

After the pformation of fitness, Reebok brand calculated by the exchange rate unchanged, sales revenue grew by 7% over the same period, Adidas said that the driving force comes from fitness training, walking and fitness running category of sustained sales growth momentum.

However, Taylor Adidas golf brand continued to slack and revenue fell by 36%.

Herbert Heiner, chief executive of Adidas group, said: "we have been addressing the major problems facing us in a positive way," Herbert Hainer said.

To adjust and stabilize Taylor Adidas golf business, we will strengthen our efforts in the United States to restore momentum and grow in the market. "

Data show that in the first three quarters, with the constant exchange rate, all regions except North America increased.

Adidas Group expects that in terms of gross profit margin, the group has been cut to 48.5%-49% between August and further reduced to 48%-48.5%.

The group's net income based on shareholders is expected to be around 650 million euros this year.

Last year, the group's net income based on shareholders was 839 million.

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In August, Adidas group said that due to the continuing weakness in the golf market and the latest trend in Russia, it would abandon the "2015 way" plan.

It is noteworthy that Gao Jiali (Colin Currie), managing director of the Greater China region of Adidas group, said, "now we are going to enter the final stage of the strategic planning of the Greater China region on the road to 2015, believing that Adidas is fully capable of achieving all our strategic goals."

In the three quarter, sales in Greater China increased by 13% over the same period.

In the first three quarters, sales in Greater China increased by 10% to 1 billion 323 million euros.