Despite Positive Consumer Sentiment, adidas Profits Fall
Although one would assume adidas has recently made an even stronger impact on the industry due to its marketing and sales during the World Cup, the giant brand has just reported falling short of targets it set this year. Even though revenue has risen 2.4% to €3.5 billion EUR this year, net profit plummeted 16% to €144 million EUR. While reasoning behind this is the combination of an increased spending on marketing because of the World Cup, along with lower margins on its products across the board, the brand did grow 41% in its sales of soccer-related products. Regardless, adidas is expecting to pull in €2 billion EUR over the course of the year, which would be a record number for the company. The general consumer sentiment (even around the comments here) has been generally positive and with the best yet to come in the form of the upcoming Kanye West and Pharrell offerings yet to hit critical mass, the future does seemingly look bright for the sportswear giant.