adidas AG  / Key word(s): Profit Warning

19.09.2013 19:49

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
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The issuer is solely responsible for the content of this announcement.

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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

 


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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
 
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