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adidas Posts Big Drop In Q2 Profit, But Beats Expectations
Published August 5, 2009
|Hainer To Assume Direct Responsibility For
adidas' Global Sales As Part Of Restructuring
TAKING A CLOSER LOOK: adidas said that "sales grew in the US and in Latin America, but fell in most major European and Asian markets." The company also indicated that "profit margins were squeezed due to higher operating costs and an increasingly competitive retail environment." Sales for the TaylorMade-adidas Golf brand increased during Q2 (BBC.co.uk, 8/5). However, the company's Reebok brand posted an operating loss for Q2 of $73.4M. Hainer said, "I am confident that our results will improve as we go through the remainder of the year. I believe we have seen the bottom in our financial performance this year." Meanwhile, REUTERS' Eva Kuehnen reports adidas is looking to save more than $143.9M in '10 by "cutting 1,000 of its almost 39,000 staff this year and by closing regional offices and potentially some of its stores" (REUTERS, 8/5). As part of the restructuring of management responsibilities, adidas' Exec BOD will consist of Hainer, Stamminger, Head of Global Operations Glenn Bennett and CFO Robin Stalker. In addition, TaylorMade-adidas Golf President Mark King and Rockport President Michael Rupp will continue to report directly to Hainer (adidas).