Germany's Addie's first quarter net profit fell 34%

A few days ago, Germany's Adidas announced that due to the impact of exchange rate changes and poor performance of adidas golf custom shoes, net profit fell 34% in the first quarter of 2014 to only 204 million euros. The German company stated that on the basis of currency-neutral, wholesale revenue increased by 1% in the first three months of 2014.

On a currency-neutral basis, the adidas golf brand has suffered a 27% decline in its custom shoe strategy. Adidas stated that sales in all regions except North America are on an upward trend, and sales in the United States have fallen by 20% due to poor performance.

Western Europe is stable, with double-digit growth in Germany and Poland, offsetting the weakness of Italy and Britain. Revenue from emerging markets in Europe increased by 28%, while the Chinese market grew by 5%, while other Asian markets remained flat. Growth in India and South Korea offset the decline in Japan and Australia.

At the same time, Latin American market sales grew by 19%, and almost all market sales showed double-digit growth, especially Argentina, Brazil, Mexico and Colombia.

Herbert Hainer, chief executive officer of Adidas Group, stated that the company had previously anticipated the challenges facing 2014. In particular, strong performance in emerging markets, our own retail was masked by the adidas golf custom shoe strategy changes and the negative impact of currency.