Adidas shares plunge record 19% as World Cup bump falls short
Adidas investors punished the German sportswear maker’s profit miss on Thursday, dragging its shares down a record 19% despite the company lifting its annual sales outlook on demand for its retro apparel and a soccer World Cup boost.
WORLD CUP PUMPED UP INVESTOR EXPECTATIONS Deutsche Bank wrote in a note to investors that it was a “good quarter”, but that against sky-high World Cup-linked expectations the numbers had disappointed the market, with implied sales growth in the second half lower than hoped for.
CEO Bjorn Gulden said he was surprised by the share price fall, adding the company kept its guidance conservative and was not trying to optimise profit short-term “just to impress certain people” by sacrificing on marketing spend.
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