Titles published by Rocklands Communications:
May 2009 • Issue 27
Adidas to restructure after profit drops 97%Adidas has announced restructuring plans – removing the regional level from its management structure, closing retail stores and closing offices in Europe and Asia - following a net profit drop of 97% in the first quarter of 2009. Profits are down to €5-m from €169-m the previous year – and sales dropped by 2% to €2.58-bn.
They will no longer operate their regional offices in Europe and Asia, certain concept stores will be closed and they will consolidate the wholesale business to reduce costs by €100-m a year. This follows the 750 jobs that the company has already cut over the year period. These job cuts were mostly due to layoffs at brands such as Rockport, Reebok and TaylorMade Golf. The group has stated that they expect a further low-to-mid-single-digit percentage drop in currency-neutral sales and a decline in gross margin, operating margin and earnings per share. However, they expect to start seeing positive earnings per share again during the second half of the year. They expect to see a significant lift from World Cup sales during the second half. About us | Contact us Sports Trader | Tackle Trader | Directory | Promotional publications Sports Trader is published bi-monthly by Rocklands Communications If you have comments or suggestions regarding this website please contact the webmaster |
