Adidas has cut its '13 profit forecast "for reasons that include Russian distribution difficulties and a weak golf market," according to Jarvis & Cruz of BLOOMBERG. The company's shares slid as much as 5.9% to €77.71 ($105), "the steepest intraday drop" since June '12. Adidas "reduced the low end of its profit forecast by 7.9 percent" late Thursday, also "because of the strength of the euro, which has caused analysts to cut profit estimates in recent weeks." A switch to a new warehouse in Russia "led to inventory shortages in the country, while the golf season has started slowly for the maker of TaylorMade clubs." Still, adidas said that "it remains confident" in its '15 goals. Adidas said in a statement that net income this year will be between €820M ($1.1B) and €850M ($1.15B). The company "had previously forecast net income" from €890M ($1.2B) to €920M ($1.24B). Exane BNP Paribas analyst Andreas Inderst estimated "about 45 percent of the forecast cut was related to currency movements, 35 percent to Russian distribution and 20 percent to the golf market" (BLOOMBERG, 9/20).
