Key facts
- Adidas shares fell significantly after missing quarterly profit expectations.
- Revenue increased by 14% to £5.7bn.
- The company maintained its full-year operating profit target of £2bn.
- Marketing spend increased by £180m over the past year, including World Cup campaigns.
- Birgit Kretschmer will become the new chief financial officer, succeeding Harm Ohlmeyer.
Adidas shares experienced a significant drop, falling as much as 19% after the company failed to meet second-quarter profit expectations. Despite a 14% increase in revenue to £5.7bn, the sportswear giant's performance was impacted by a substantial hike in marketing expenditure, particularly for campaigns surrounding the recent Fifa World Cup. The company maintained its full-year operating profit target of £2bn, but the market reacted negatively to the missed quarterly earnings. The increased marketing spend, amounting to £180m over the past year, included high-profile campaigns. CEO Bjorn Gulden expressed surprise at the share price decline, stating the company is investing in innovation and visibility rather than short-term profit optimization. Adidas highlighted growth in the running and football sectors. The company's stock performance puts pressure on CEO Bjorn Gulden's strategy to close the gap with rival Nike. In leadership changes, Birgit Kretschmer is slated to join Adidas as its new chief financial officer, succeeding Harm Ohlmeyer, who will depart at the end of his contract.