Adidas cut its midterm sales outlook for its Reebok brand after a license cancellation in the U.S. but said it "expects its adidas brand to compensate for the shortfall," according to Nicky Redl of the WALL STREET JOURNAL. Reebok's sales target for '15 was cut to €2B ($2.6B) from €3B ($3.9B), after it decided not to renew its NFL license and following a change in the reporting of NHL-related license sales. Reebok will now market itself as a "fitness-only brand." The company said that sales of its adidas brand are expected to rise to €12.8B ($16.7B), beating a previous projection of €12.2B ($15.9B). Adidas still expects global sales of €17B ($22B) by '15 and an operating margin of 11%. Its three key markets in North America, China and Russia are "expected to deliver around 50% of the company's targeted sales growth." European network of equity bodies firm Equinet Analyst Ingbert Faust said, "Despite the disappointing expectation for the Reebok division, the other divisions are showing extreme strength and thus compensate" (WSJ, 9/21).
The motorcycle world championship (MotoGP) race at the German Sachsenring racetrack "is not in danger, despite a complaint of alleged illegal financial support from the state government," according to the SID. The complaint at the European Commission, the executive body of the European Union, "concerns the granting of financial support" of €1.5M ($1.9M) from the State of Saxony to the Sachsenring racetrack. The complaint "was issued by competing racetrack Lausitzring." Sachsenring operator SRM Assistant Board Chair Jan Hippold said, "We are not happy about the complaint, but we have to deal with it. However, I don't see any problems for next year." The financial support money "was supposed to finance necessary upgrades of the racetrack," which hosts the only German MotoGP race. The State of Saxony "is not allowed to transfer the money to the racetrack until the case is resolved," which could take months. The Sachsenring "had to get a loan to finance the necessary upgrades" (SID, 9/23).