European sales trip Adidas
US sales recovery boosts sportswear brand
Adidas has seen European sales decline across the third quarter, but a big jump in the US pushed profits for the sportswear brand up 19 per cent.
Orders for the Adidas brand fell by 4 per cent in Europe across the quarter, the first decline in almost three years. The company said the main problem was the tough sales environment in Germany and Italy.
Global sales rose by 5 per cent in the quarter to €1.953bn, with net profit of €179m, up from €150m a year ago and ahead of forecasts, thanks to strong growth in Asia and a sales lift in the US. US sales rose 2 per cent year-on-year.
However, Adidas will take a hit from its decision to recall supplies of it Superstar Ultra and Pro Team shoe brands, mainly sold in the US, because the heel’s inner sole could loosen or break.
Two injuries have resulted from the defect, said Adidas. About 187,000 pairs were sold between January and October in the US. The recall, due to faulty material, will cost the company between $5m and $10m.
