The World Cup in Brazil was a triumph for sporting goods maker Adidas. Two teams – Germany and Argentina – wore the brand’s iconic three stripes as they faced each other in the final last month. Sales of the German national team’s jersey were brisk throughout the summer, keeping investors smiling and happy.
Lost in the soccer-fuelled euphoria, however, were disappointing results in other areas of the company. And this week it became abundantly clear that the Bavarian-based company is facing its largest crisis in many years.
The chief executive of Adidas, Herbert Hainer, not only had to quash the financial forecast for the year, but he also had to abandon the company’s long-term goals.
It has long been obvious to investors that Adidas is struggling. Share prices have plunged by 20 percent since the beginning of the year, something even the most critical of shareholders could not have foreseen. The stock took yet another hit on Thursday, dropping 16 percent following the announcement of the quarterly figures.