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Adidas China earnings growth continued to slow down

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Adidas China earnings growth continued to slow down

Chinese market and other sports brands like Adidas also face the adverse impact of the downturn in market demand, and a sharp slowdown in sales growth in China also affected the company's performance in the global equity markets Last night, Adidas released the 2013 interim report, the report shows, the first half of this year, Adidas global net sales of 7.134 billion euros, down 3%. Net sales in the second quarter, which amounted to 3.383 billion yuan, down 9.81%. In the first half of this year, in addition to the Greater China region and Latin America, Adidas sales in other regions of the world have different degrees of decline, which accounts for the largest proportion of the company's performance in Western Europe, sales fell 9%. To this end, Adidas also lowered the amount of the company's sales forecast is expected in the case without regard to exchange rate fluctuations, sales in 2013 will be the number of units to low levels of growth in the number of units. Previously, the company forecast 2013 sales growth will be still in single digits. While Adidas said in the report, the Greater China region and the growth performance of Latin America to offset the adverse impact of the Western European market decline in performance of the company's total performance brings, however, a general decline in the company's global performance sports brand in China's market situation remains grim environment, growth in China, Adidas has slowed down significantly. Daily News revealed that the first half of this year, net sales of 781 million yuan in Greater China, currency-neutral basis, an increase of 6%, far below the 19 percent growth rate over the same period last year. The company said that in China, the fastest growth rate of the low-end market, but the stock is still troubled company is a major problem. Chinese market and other sports brands air jordan 7 for sale like Adidas also face the adverse impact of the downturn in market demand, and a sharp slowdown air jordan 1 retro in sales growth in China also affected the company's performance in the global equity markets. Garment industry analysts said, because trends change reduces consumer choice and demand, China's sports brand market capacity growth is increasingly limited, both foreign brands or local brands, like that before then to rapid growth are relatively the difficulty. Compared to international sports brands, local businesses living conditions more difficult. Where the gross profit margin fell by 0.7%, industry profitability is still not optimistic. When Adidas and other international sports brands will lower cost manufacturing centers to larger markets in Southeast Asian countries shift domestic local enterprises generally begin to integrate sales channels, and trying to integrate the industry. The analysts said that companies currently determine the future direction of the uncertainties still exist, and therefore generally adopt a prudent way to deal with. Anta says that China's sporting goods industry in general faced with excess inventories and retail channels caused by the excessive expansion of the challenges in the past few years, industry participants have taken action to address these issues, including the reduction of future orders, closed shop, inventory and clean up aging reform of the retail channel. Although inventory levels and the number of shops have gradually normalized, but high operating costs and intense competition also makes the presence of Chinese sporting goods industry uncertainty and further accelerate the pace of industry consolidation.

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