SBD Global/December 28, 2012/FinancePrint All
Adidas CEO Herbert Hainer told German newspaper Sueddeutsche Zeitung he expects sales to be "higher than €14.5B ($19.2B)" this year, according to REUTERS. So far, adidas has forecast sales of about €14.5B in '12, up from €13.3B in '11 (REUTERS, 12/27). DEUTSCHE WELLE reported Hainer said that sales volumes "could rise to €17M ($22.5M) annually by '17." Hainer said, "But the eurozone debt crisis is making it harder for us to achieve our objectives. The high unemployment rate and the economic woes especially in southern Europe aren't particularly helpful." He added, however, that "business was brisk in the U.S., Russia and China." Hainer stated that the German company's sales "would be boosted further next year through the introduction of a new generation of running shoes that could see the firm grow despite the lack of major int'l sporting events" (DW, 12/27).
High inventories "caused by quick expansion, product homogeneity, price surges and sliding purchasing power are expected to pressure int'l and local sports goods brands this winter," according to Wang Zhuoqiong of the CHINA DAILY. Nike's second-quarter fiscal report revealed that Nike sales in China -- including footwear, apparel and equipment -- declined 11% to $577M. Nike's "reported future orders, scheduled for delivery from December through April," fell by 6%. In comparison, Nike's revenue has increased 11% in other emerging markets to $1.05B. Domestic brands "are also struggling due to the weak market demand." Sequoia Capital, a venture capital fund that has invested in Google and Cisco, "has reduced its stake in one of the leading Chinese sports apparel companies, Peak Sport," from 6.22% to 3.65%. Anta Sports Products saw its first-half revenue down 11.6% year-on-year to 3.93B yuan ($630M). Anta said that its orders for the first quarter of '13 have fallen by 20 to 30% (CHINA DAILY, 12/27).