Adidas, the German sportswear and equipment manufacturer, reported a decline in net profit for 2014 due to economic instability in Russia and challenges in the golf sector.
Financial Performance ¶
The company experienced a 37% drop in net profit, amounting to 490 million euros ($541 million), which fell short of the expected 642 million euros forecasted by FactSet.
Sales saw a modest increase of 2.3% to reach 14.5 billion euros. However, the devaluation of the Russian ruble significantly impacted Adidas' performance in this key market.
Outlook and Response ¶
Despite these setbacks, Adidas anticipates a more positive outlook for 2015, forecasting a 7-10% increase in net profit and maintaining its sales growth targets.
Chief Executive Herbert Hainer stated,
