Adidas Shares Fall 17% on Earnings Miss as World Cup Marketing Costs Bite
Adidas shares fell as much as 17%, the steepest single-day decline since 2014, after second-quarter operating profit of €574M missed the consensus estimate of €623M. The miss was driven by more than €200M in additional World Cup marketing spending.
The sportswear maker maintained its full-year operating profit forecast at around €2.3B, below the nearly €2.5B expected by analysts, while raising its constant-currency revenue growth outlook to 9% to 10% from high-single-digit growth. CEO Bjørn Gulden said the company is prioritizing marketing investment to gain market share and expressed confusion over the stock reaction, while an RBC analyst noted the heavy promotion costs frame the miss as higher quality.
From the sources (6 posts)
@arjourdanAdidas shares slide record 17% as profit miss taints sales upgrade
@zerohedgeADIDAS SHARES FALL 16% AFTER 2Q EARNINGS MISS ESTIMATES
@firstsquawkADIDAS SHARES FALL 16% AFTER Q2 EARNINGS MISS ESTIMATES
@wallstengineADIDAS HEADS FOR WORST DAY SINCE 2014 Shares fell as much as 17% after Q2 operating profit of €574M missed the €623M estimate. Adidas also maintained its FY operating profit outlook of around €2.3B, below the nearly €2.5B expected. The co
@businessAdidas posted underwhelming profit after the German brand ramped up marketing spending for the World Cup, weighing on an otherwise strong quarter
@zerohedgeAdidas Shares Crash After World Cup Spending Fuels Earnings Miss