What Problems Have Adidas Encountered?

If you think of the young people in the streets of the United States in 1970s who are wearing cool sports shoes with three bars marked, Adidas's situation is even more desolate. In 2014, Adidas lost to Under Armour in the North American market, falling to third place for the first time. In the Chinese market, its performance in recent years is far less eye-catching than New Balance, and the gap between its brand appeal and its old rival Nike is getting bigger and bigger.

The share price fell 38% in the whole year and a huge loss of 140 million euros in the single quarter. Adidas's report card in the 2014 fiscal year was rather bad. "In 2014, we experienced ups and downs, and in 2015, all sales of our brands will grow." After the release of the annual report, CEO Herbert Heiner (Herbert Hainer) raised the average annual revenue growth of 15% and average in 2020, respectively, in the March 26th investor relations day event. Net profit The goal of increasing 6%-9%.

This is in Adidas The veteran employee who has worked for 15 years has not given a detailed implementation plan to achieve this goal, but he may be worried. What we are seeing most is Adidas launched 50 classic colors in one breath. Shell shoes Superstar, it looks like Adidas will become more radical and open.

Conservative, slow response, and design have been criticized by Adidas before. But so far, how much money have been lost?

In the fourth quarter of 2014, Adidas had a loss of up to 140 million euros, which is equivalent to nearly half a year's income from its headquarters and the town of hegso in the German town.

Such performance has also dragged down Adidas's annual performance: 490 million euro's net profit fell 37.7% year on year, even if it did not consider goodwill, it failed to achieve the full target of 650 million euros. If the target was lowered in mid 2014, it would be even more serious.

Fortunately, the group's total revenue has maintained a weak upward trend, rising from 14 billion 203 million euros in 2013 to 14 billion 534 million euros in 2014, an increase of 2%. This is also a figure Adidas is more willing to discuss, benefiting from the Brazil World Cup and the Champions League, in addition to the North American market, the other regional markets in the world in 2014 have achieved sales growth.

But over the past 5 years, Adidas's sales have fluctuated and there is not a handsome growth curve. In general, profits are also going downhill: 564 million euros in 2014, lower than 568 million euros in 2010.