Rebook Has Dragged the Profit of Adidas

The performance of Adidas has continued to be higher than its competitors. Its revenue and profit in the third quarter of 2012 showed a substantial growth. However, Rebook Company that was its American subsidiary company encountered the problem, so it ranked only second to Nike's second biggest sports brand. 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.
But the group's president called Herbert Hainer expected, in the next year, the company's turnover and profit will break a record just like that in 2012. 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. The turnover rose eleven percent and reached to 4.2 billion euros. And this realized the market expectation before. An analyst has been interviewed by Reuters, and it was expected by him before that the average turnover in the third quarter of Adidas group will be 4.15 billion euros and the net earnings will reach to 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. North American market, therefore, showed an overall decrease. Compared with Nike and Puma, Adidas's performance developed best. Although Nike group appeared a strong growth, the entirety and products' turnover decreased.
Puma group had a very strong dependence on Europe. So it has been completely affected by the debt crisis. Within the twenty years, the management of Puma group made the largest adjustment for the sake of dealing with the decrease on profit and the gloomy prospect. Adidas company's profit this year is going to range between 770 million euros and 785 million euros, and it will set a record. The corresponding increase may range from fifteen percent to seventeen percent. In the former nine months, the profit of Adidas group has reached to 798 million euros. To some extent; there maybe losses to Adidas group in the fourth quarter. What is more, the expectation showed that Adidas group's turnover increase will be lower than ten percent during the whole year of 2012.