FRANKFURT, Germany — Adidas AG, the world’s second- largest maker of sporting goods, cut its 2013 earnings forecast because several currencies weakened against the euro.
Net income this year will be between 820 million euros ($1.1 billion) and 850 million euros, the Herzogenaurach, Germany-based company said in a statement today. Adidas had previously forecast net income of 890 million euros to 920 million euros. Adidas also cut its operating margin forecast to about 8.5 percent from a previous forecast of 9 percent.
“The further weakening of several currencies versus the euro throughout August and September such as the Russian rouble, Japanese yen, Brazilian real, Argentine peso, Turkish lira and Australian dollar have intensified the negative currency translation headwinds already highlighted,” Adidas said today. “This is estimated to lead to a high-single-digit percentage point negative translation impact in the third quarter.”
Adidas had previously pared its revenue forecast for the year on Aug. 8 citing“lackluster” sales of sporting goods in Europe and unfavorable currency movements as the Japanese yen, Brazilian real and British pound all weakened against the euro.
By Julie Cruz; Editors: Molly Schuetz, James Callan, Paul Jarvis