The Better Development of Adidas

The performance of Adidas has continued to be higher than its competitors. In the third quarter of 2012, its turnover and profit increased dramatically. 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.
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. It was announced by Adidas Group on Thursday (November 8) that there was a fourteen percent increase on the surplus of the group and reached to 344 million euros from this year's June to September. 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.
In the third quarter, what pushed Adidas group's performance rise mainly was the specialty shop retail. 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. However, there was as mush as twenty-five percent decline to Reebok's performance. North American market, therefore, showed an overall decrease. 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. 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. In the fourth quarter, Adidas group may have some losses. In addition, it was expected that throughout 2012, the turnover growth of Adidas group will be lower than the percent.