Sports manufacturer Adidas warns on 2015 growth and trims its growth margin for next year as well, even as its third quarter stands fast in Europe and inventory management improves. Axel Threlfall reports.
Another kick for Adidas, warning on 2015 growth and trimming its gross margin targets for next year. Remember this is a brand already struggling to keep pace with Nike. That said Q3 was broadly in line and it is holding its ground in Europe, the shares opened close to 5% higher, about an hour after trade they're still hovering around those levels. It seems analysts also focusing on how well the company is doing in getting its surplus stock down - inventory management as its called But the widening margin gap with Nike remains the sticking point. Here's the Barclays take this morning - management expected to come under heavy pressure to change its strategy to narrow that gap. So long-time CEO Herbert Hainer has his work cut out for him. That of course has the market guessing what Adidas managers could do differently, one option of course to sell Reebok which it bought back in 2006 - reports doing the rounds that there's a 2 billion dollar bid from Middle East investors waiting in the wings.