AD-HOC: adidas AG amends full year 2013 guidance
For immediate release September 19, 2013 AD-HOC: adidas AG amends full year 2013 guidance Herzogenaurach- Following today's Executive Board meeting, Management is updating its full year expectations to account for recent negative market developments. Firstly, the further weakening of several currencies
AD-HOC: adidas AG amends full year 2013 guidance
For immediate release September 19, 2013 AD-HOC: adidas AG amends full year 2013 guidance Herzogenaurach- Following today's Executive Board meeting, Management is updating its full year expectations to account for recent negative market developments. Firstly, the further weakening of several currencies
adidas AG / Key word(s): Profit Warning 19.09.2013 19:49 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- For immediate release September 19, 2013 AD-HOC: adidas AG amends full year 2013 guidance Herzogenaurach - Following today's Executive Board meeting, Management is updating its full year expectations to account for recent negative market developments. Firstly, the further weakening of several currencies versus the euro throughout August and September such as the Russian rouble, Japanese yen, Brazilian real, Argentine peso, Turkish lira and Australian dollar have intensified the negative currency translation headwinds already highlighted by Management during the course of the year. This is estimated to lead to a high-single-digit percentage point negative translation impact in the third quarter. Secondly, an unexpected short-term distribution constraint as a result of the transition to the adidas Group's new distribution facility in Chekhov, close to Moscow, is impacting the quantity of new product flow to stores. While the problem is expected to be resolved at the beginning of the fourth quarter, this, together with the weakness of the Russian rouble, means that the Group's 2013 goals for Russia/CIS are no longer attainable. Finally, the continued softness in the global golf market and TaylorMade-adidas Golf's focus on maintaining healthy inventory levels in the marketplace will lead to a lower sales and profit contribution from the segment than originally forecasted. Taking all of these issues into account, Management now expects a low-single-digit currency-neutral sales increase (previously: low- to mid-single digit increase) for the full year, an operating margin of around 8.5% (previously: approaching 9.0%) and net income attributable to shareholders to increase at a mid-single-digit rate to a level of EUR 820 million to EUR 850 million (previously: EUR 890 million to EUR 920 million). In terms of phasing, a significant portion of the negative impact will be in the third quarter, with Management continuing to expect a strong rebound in sales and profitability growth in the fourth quarter. adidas Group nine months financial results will be released on November 7, 2013. *** Contacts: Media Relations Investor Relations Jan Runau John-Paul O'Meara Chief Corporate Communication Officer Vice President Investor Relations Tel.: +49 (0) 9132 84-3830 Tel.: +49 (0) 9132 84-2751 Katja Schreiber Christian Stoehr Director Corporate Communication Senior Investor Relations Manager Tel.: +49 (0) 9132 84-3810 Tel.: +49 (0) 9132 84-4989 Lars Mangels Corporate Communication Manager Tel.: +49 (0) 9132 84-2680 Please visit our corporate website: www.adidas-Group.com 19.09.2013 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: adidas AG Adi-Dassler-Straße 1 91074 Herzogenaurach Germany Phone: +49 9132 84 0 Fax: +49 9132 84 2241 E-mail: Internet: www.adidas-group.com ISIN: DE000A1EWWW0, US00687A1079, US00687P1049 WKN: A1EWWW, A0MNCC , 909676 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------