Adidas reported a slowdown in sales growth in China and Europe in the lsecond quarter of 2012. In addition to this, the German-native sportswear brand also announced that its Reebok brand's sales dropped 26% down, after "commercial irregularities" at its Indian arm and the loss of a major American football contract.
While sporting goods companies have been benefiting from a string of major events, such as the Olympics in London, there are growing concerns that economic troubles in Europe and slowing growth in China will start to badly affect the sale performances of sportswear brands like Puma and Nike and Adidas, as well.
Adidas said it expects earnings per share in 2012 between €3.68 and €3.75 ($4.53-$4.61), compared with a previous target between €3.58 and €3.75, with forecasts for overall sales are to grow by almost 10%.
Furthermore, Adidas also said sales growth in China slowed to 13% in Q2 2012 from 26% in Q1 2012, as well as in Europe, where sales were 5% up, compared to 7% in the first quarter.
The group reported second-quarter sales 7% up to €3.52 billion and €256 million operating profit, slightly above analysts' forecasts.