Adidas posts loss on weaker Reebok prospects


FRANKFURT, Germany— Sports gear maker Adidas AG lost €273 million ($356 million) in the fourth quarter as it wrote down the value of its weakening Reebok brand. But it said sales and earnings would increase this year and raised its dividend payments.

Adidas shares rose after Thursday’s announcement, trading 3.7 percent higher at €74.32 in morning trading in Europe.

The company, based in Herzogenaurach, Germany, said it took a goodwill impairment of €265 million at the end of last year. It said the loss was “mainly caused because of adjusted growth assumptions for the Reebok brand, especially in North America, Latin America and Brazil.”

The net loss compared to a profit of €1 million for the same quarter in the previous year. Sales rose 4 percent to €3.37 billion.

The company said sales revenue in Western Europe fell 4 percent adjusted for exchange rate swings, as the year-earlier figure was boosted by sales ahead of the Euro 2012 soccer tournament and the 2012 London Olympics.

Adidas expects sales this year to increase in the mid-single digit percentage rate, and earnings per share to rise more strongly, to between €4.25 and €4.40, compared with €2.52 for last year.

The company said management would propose a 2012 dividend payment of €1.35 per share at the annual shareholders’ meeting May 8, an increase over the €1.00 per share paid for 2011.

For the full year, net income fell 14 percent to €526 million from €613 million in 2011. Group sales increased 12 percent to €14.88 billion.

Get Inquirer updates while on the go, add us on these apps:

Inquirer Viber

Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.

  • kismaytami

    Why would I buy expensive shoes made in china?

To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.

Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:

c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City,Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


editors' picks



latest videos