Adidas, the German sports shoe and casual clothing brand, said Friday the decline in the rouble had hit its earnings in Russia, a key market with more than 1,100 Adidas stores.
In an unscheduled announcement of provisional estimates for the 2014 financial year, Adidas said sales grew by 2 per cent to 14.8 billion euros (17.1 billion dollars) and that its earnings target of 650 million euros had been achieved.
That was less than originally hoped for Adidas, which reduced the target mid-year. The company said Friday its accounts in euro terms would mark down Russia receipts by 80 million euros because of the plunge in the rouble exchange rate.
The company must also pay to restructure its US-based golf club unit, TaylorMade.
Adidas said it was selling Rockport, a US manufacturer of leather shoes, to competitor New Balance and private equity group Berkshire Partners. The sale for 280 million dollars was at a loss to Rockport’s book value.