A Higher Performance of Adidas

Adidas's performance has kept on being higher compared with its rivals. In the third quarter of 2012, its turnover and profit increased dramatically. But due to the existing problem of Rebook Company, which was its subsidiary company in the United States, its ranking was just lower than the second biggest sports brand of Nike. Adidas Company cut the expected value of its turnover this year down. Because after the fraud case, it required to supply Rebook India company's restructuring with financial support. Adidas expected that in the fourth quarter, it will fall into deficit.
However, it was expected by Herbert Hainer who the president of the group that just like 2012, the company will set a record on its turnover and profit in the next year. On Thursday (November 8), Adidas group announced that from June to September this year, the group's surplus rose fourteen percent and reached to 344 million euros. There was an eleven percent increase on the turnover, which reached to 4.2 billion euros. And the previous market expectation was realized through this. According to the previous expectation of an analyst who has received the interview of Reuters, Adidas group's third quarter average turnover will be 4.15 billion euros, and the net profit will be 335 million euros.
The exclusive shop retail was the main factor that promoted the rising performance of Adidas group in the third quarter. There was almost no growth to the wholesale business. There was a respective ten percent increase on the turnover of Adidas in eastern Europe, China and Latin America after the exchange rate's adjustment, and the increase was the largest. But Reebok's performance fell by as much as twenty-five percent. So there was an overall decline to the market of North American. The performance development of Adidas was the best compared with Nike and Puma. Although Nike group appeared a strong growth, the entirety and products' turnover decreased.
As for Europe, Puma group showed a quite strong dependence. So it has been completely affected by the debt crisis. In order to deal with the profit decline and the dim prospect, Puma group's management made the largest adjustment during the twenty years. This year, the profit of Adidas Company is likely to reach to 770 million euros to 785 million euros, and a record will be broken. Accordingly, the growth could reach to fifteen to seventeen percent. Adidas group's earning has reached to 798 million euros in the first nine months. In the fourth quarter, Adidas group may have some losses. What is more, the expectation showed that Adidas group's turnover increase will be lower than ten percent during the whole year of 2012.