posted at 02:00
Author Name: Sam Ro
Adidas Warning About Russia
Everything seemed to be going Adidas' way until the western world clashed with Russia. Shares of the $12 billion global shoe brand plunged by over 14% early in the European trading session. To be clear, Adidas actually just wrapped up a strong second quarter. They surely benefited from having sponsored both teams in the World Cup final. The company said sales jumped 10% during the period, driven by 14% growth in Adidas brand sales. Despite what's going on in Russia, Adidas is pushing forward with its growth efforts in the rest of the world. "[F]ollowing the strong performance at the 2014 FIFA World Cup, and improving momentum at brand adidas and Reebok, Management has decided to step up marketing and point-of-sale investments over the next 18 months to secure and drive faster growth rates and market share gains, particularly in the developed markets such as North America and Western Europe," they said. Adidas will provide a more complete update when it announces its full Q2 results on August 7.

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