|Bid||220.10 x 0|
|Ask||223.60 x 0|
|Day's range||218.30 - 223.30|
|52-week range||74.49 - 317.35|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||N/A (N/A)|
|1y target est||N/A|
(Bloomberg) -- Adidas AG is seeking more than 1 billion euros ($1.1 billion) in German government aid as it grapples with the fallout of the coronavirus pandemic, people familiar with the matter said.The sporting goods maker is in talks with German state-owned bank KfW about a financing package, according to the people, who asked not to be identified because the information is private. Adidas has been discussing a range of around 1 billion euros to 2 billion euros in loans, though the final amount and timing haven’t been decided, the people said.Shares of Adidas fell as much as 4.9% Friday. They were down 3.9% at 2:55 p.m. in Frankfurt, making the company the worst performer on Germany’s benchmark DAX index, which was little changed.Adidas said this week it’s reversing an earlier decision to not make April rent payments for its shops in Germany following a public backlash. Most non-food retailers in Europe’s largest economy are closed until at least April 20 to stop the further spread of Covid-19.Chief Executive Officer Kasper Rorsted recently told a German newspaper that while the company won’t need direct government support, Adidas and the economy as a whole will need credit. A representative for Adidas declined to comment further. A representative for KfW also declined to comment.The state-owned bank launched a loan program on March 23 to help companies facing a liquidity shortage. About 2,500 companies have applied for loans totaling 10.6 billion euros.Tour operator TUI AG said last week it secured a 1.8 billion-euro loan from KfW in one of the biggest bailouts in Germany so far. Consumer electronics retailer Ceconomy AG is also among firms that are seeking to participate in the program, Bloomberg News has reported.(Updates with share movement in third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- As measures to curb the coronavirus heap pressure on the global retail sector, observers have struggled to quantify the economic ramifications. There are signs that affected companies are offering some useful disclosure that may in turn help sentiment. Adidas AG last week outlined a roughly $1 billion reduction in first quarter sales and $500 million impact on operating profit, but that was before many countries outside Asia started taking aggressive steps in response to the crisis.Now Next Plc has provided more expansive detail about how it sees the months ahead. With shares in most retailers in freefall – Next is down about 40% this year – investors needed to hear something constructive. While the U.K. fashion chain said it could not give guidance for the full year, it has produced a stress test that outlines potential outcomes.In a worst-case scenario, full-price sales would be down by about 1 billion pounds ($1.16 billion), a quarter of its total, which would mean pre-tax profits of just 55 million pounds for the financial year (against 729 million pounds in the year earlier).The company has also set out how it might cope with the crisis financially, given the possibility of extended store closures. It could suspend buy-backs and dividends, delay capital expenditure, sell and lease a warehouse and partly securitize customer debts. Pulling these levers could provide an extra 835 million of cash. Bringing forward its forthcoming sale, and pushing back deliveries of stock would free up another 100 million pounds.These projections exclude any use of government lending or measures to help pay wages, and Next is conservatively assuming no rent reductions from landlords.This disclosure dashboard sets a good example for others to follow. But Next can afford to be upfront with its investors. It is one of the strongest retailers in the U.K. sector.Similarly, Burberry Group Plc provided some near-term clarity, warning that fourth-quarter comparable sales in its stores would be down by 30%, with a 70-80% decline in the final weeks through to its March 31 financial year-end. Like Next, the luxury group has a strong balance sheet, with the company forecasting a cash balance of 600 million pounds before lease obligations.It is understandable why weaker chains may be less willing to quantify the impact on their businesses. But their investors will expect a similar assessment of possible scenarios. And larger, well-resourced chains have no such excuse for not saying more.Take Inditex SA, the world’s biggest clothing retailer. It said the outbreak had cut its sales by 24% between March 1 and March 16. But it didn’t outline the potential full-year impact. This is from a company with record net cash of 8.1 billion euros ($8.7 billion) at January 31.There will be many more tough announcements over coming weeks as retailers and restaurants outline the financial cost of what is happening now. But even if they can’t make exact predictions, they should learn from Next’s example and aim to at least give the market a toolkit for understanding the resilience of their business. Next shares’ strong gain in a falling market on Thursday suggests transparency is rewarded.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Closeageddon is how analysts at Jefferies are describing the retail store shutterings in the U.S.With chains run by big names such as Nike Inc, Apple Inc and Hennes & Mauritz AB closing doors, and icons including Macy’s and Bloomingdale’s joining them, the challenge facing the sector is worsening.Adidas AG warned last week that the suspension of store trading in China would cost it about $1 billion in lost sales. Add in closures across the U.S. and Europe, and multiply that by the number of household names retreating, and the bill to the retail industry may be astronomical.Stacey Widlitz of SW Retail Advisors estimates first quarter revenue will be down by 50-70% on average for global retailers.While sales are evaporating, overheads still need to be paid. This brings into focus the financial strength of parts of the global sector. Those that have been doing well for a long time, including Nike Inc. in the U.S. and Industria de Diseno Textil SA (Inditex) in Europe should have the resources to cope. H&M has little borrowing.But many retailers were already struggling going into this crisis – think of some of the U.S. department stores. Those trying to implement turnarounds, such as Victoria’s Secret, which parent L Brands Inc. has agreed to partially sell, and Under Armour Inc. now face additional hurdles.Gap Inc. has been trying to revive its namesake brand. At least its balance sheet is in decent shape. The same can’t be said for the likes of JC Penney Co Inc. and J Crew Group Inc., the private-equity owned clothing retailer that plans to spin off its Madewell unit to cut debts. With markets experiencing unprecedented volatility, there must be a question mark over this transaction, and maybe even the Victoria’s Secret deal.Retailers would ideally want to stand by staff for as long as they can. It may be hard to imagine at present, but when the virus eventually recedes and activity picks up stores will need their workforces. Yet the pressures to cut back will be immense. The likely first move will be to reduce the temporary workforce.Self-help measures are limited. Stock can in theory be moved from shuttered markets to those where there is still demand. The trouble is, with large swathes of Europe and increasing numbers of U.S. cities in lock-down, the regions where non-essential shopping is even permissible are dwindling.Speaking to suppliers about delaying orders, or even cancelling them, particularly if Asian manufacturers are experiencing backlogs, may provide some respite.Where businesses operate from leased sites, landlords will have a role to play. Struggling tenants and mall owners need to have a grown-up conversation about whether payments can be deferred or rents reduced. With demand shifting from physical stores to online for the past decade, landlords are already bruised. But they are in this crisis together with retailers. The mall owners can ill afford more vacant lets. It would be wise to take steps to prevent that now.Such measures will only go so far. The case for targeted government support is pretty clear. One possibility is cheap state-backed loans, as the U.K. announced on Tuesday. In practice, such support may end up helping firms that were already uncompetitive. That may be the price to pay.Tax breaks are another. Again, British retailers have long sought a reduction on property-based “business rates”, which they argue unfairly punishes chains with large bricks and mortar estates. They just got a 12-month holiday from the tax.On both sides of the Atlantic, arrangements are needed so that suppliers can still insure themselves against retailers going bust before they have settled for ordered goods. That risk is elevated right now. If insurance companies pull cover, retailers may be forced to pay for stock up front, putting even more pressure on already strained cash flows. Government can help.Retailers, landlords and lenders will have to come to some accord with each other. Even then, they will struggle to get through this on their own.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
German sportswear maker Adidas on Tuesday joined rivals in announcing store closures in response to the coronavirus pandemic. Adidas and Reebok-owned stores in Europe, North America and Canada will be closed temporarily, the company said in an emailed statement. "At Adidas, the health and safety of our employees, customers and partners have the highest priority," the group said, adding that affected staff would be paid for their planned working hours despite the closures.
There's been a major selloff in adidas AG (ETR:ADS) shares in the week since it released its annual report, with the...
Unfortunately for some shareholders, the adidas (ETR:ADS) share price has dived 39% in the last thirty days. Even...
(Bloomberg Opinion) -- Adidas AG has become the first big consumer group to put a figure on the impact of the novel coronavirus. It won’t be the last. And the ultimate cost to the maker of Stan Smith sneakers may be much bigger than the about $1 billion hit to revenue outlined on Wednesday.Adidas, which also makes Kanye West’s Yeezy line and Beyonce’s Ivy Park collection, said first-quarter revenue in Greater China would be between 800 million euros ($906 million) and 1 billion euros lower than in 2019 because of the effect of the outbreak. It expects operating profit in the region to decline by as much as 500 million euros in the quarter. This reflects Chinese store closures and a drop in visits to locations that were open. China accounted for 23% of Adidas’s sales in 2019.While Adidas said things have started picking back up in China since the end of February, with stores and factories reopening, the danger is that there is more pain to come as the virus spreads. Just how bad it could get, nobody can say for sure. Underlining the threat, rival Puma SE said it wasn’t possible to quantify the coronavirus’s effect on its full-year results. Consequently, it retracted its Feb. 19 outlook that was based on expectations for a quick recovery from the virus. From Adidas’s perspective, footfall is already declining in its stores in Japan and South Korea, which will hurt first-quarter sales by 100 million euros. Kasper Rorsted, Adidas’s chief executive officer, acknowledged that sneakers and sportswear won’t be high on people’s shopping lists as they emerge from quarantine. But he argued that the company is on solid footing to weather the crisis. The company is forecasting an increase in group sales excluding currency movements of between 6% and 8% for 2020, with the operating margin set to increase from 11.3% in 2019 to between 11.5% and 11.8%. But that does not reflect any impact from the coronavirus outbreak.With the virus spreading to the U.S. and Europe, there is a serious risk that consumers there also take fright.Footfall across the market is already suffering on both sides of the Atlantic. If the illness continues to spread, shoppers’ reluctance to hit the mall will only increase. Governments moving to stem large gatherings, employees increasingly working from home and plunging stock markets could all dent demand. What’s more, avoiding the gym for fear of infection means less need for new workout gear.Meanwhile, the risk of sporting events such as the UEFA Euro 2020 soccer tournament and the Olympic Games, is particularly severe for Adidas. If these events were to be canceled, it would hurt sales by about 50 million to 70 million euros, it said, with the bigger impact from Euro 2020.Shares in Adidas fell as much as 8.8% on Wednesday. Even without the warning on the coronavirus, there may have been some worry about the fourth-quarter performance from 2019. While sales excluding currency movements rose 10% in the final three months of the year, the gross margin declined by 3.2 percentage points, hurt by adverse currency movements and a less favorable mix of products sold. But right now, the illness is the focus of investors’ attention.Rorsted likens the situation to a football match. The company had a great first half. The break has been longer than expected, but the second half will also come.Yet right now, investors don’t know when normal play will resume, and what else might transpire before the kick-off.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Adidas AG forecast the coronavirus will cut first-quarter profit in China by about half a billion dollars, while German rival Puma SE said it no longer expects any recovery in the short term.The German sportswear maker forecast first-quarter revenue will drop 10%, stripping 400 million euros to 500 million euros ($450 million to $570 million) from profit. Puma said Wednesday that it can’t quantify the potential impact of the disease outbreak, and so last month’s target for a 10% increase in revenue this year no longer applies.Sportswear demand will take longer to recover than other consumer goods, Adidas Chief Executive Officer Kasper Rorsted said in an interview with Bloomberg TV.“We are on the end of the food chain,” he said. “If you’ve been sitting for two weeks in an apartment, your first thought is not to buy a pair of sneakers, it is to restore your fridge.”Shares of Adidas fell as much as 8.8% in Frankfurt, while Puma dropped 6%.Adidas declined to estimate the full-year impact of the spread of Covid-19, which will be worse because business is already also slowing in Japan and South Korea even as China starts to recover. Chinese sales will drop by as much as 1 billion euros in the first quarter, while the company expects a 100 million-euro drop in Japan and South Korea.“We’re concerned about the dimensions of 2020 and potentially the year following, but we also know from the past that viruses will pass,” Rorsted said. “My company is not going to get any better if I run around being in panic.”The company would lose 50 million to 70 million euros if the Olympics and the Euro Cup games are postponed. The apparel maker gets almost a quarter of its revenue from China and has about a fifth of its production there. Rorsted said he isn’toverly concerned about supply chain shortages.Excluding the epidemic, Adidas projected currency-neutral sales would grow 6% to 8% this year. That’s slightly more aggressive than last year’s forecast around this time, which was 5% to 8%.Adidas said sales slumped 80% in China last month, but stores and warehouses have gradually reopened and consumer traffic is slowly picking up. To try to prevent a glut of unsold products on the market, Adidas canceled all wholesale shipments to retailers in February and it may take back a significant amount of stock from its partners, which Adidas will put up for sale in its own stores later this year.Deals have been popping up in Asia for Adidas products, including buy one-get one free offers in Hong Kong.(Updates with Adidas CEO comments starting in second paragraph)\--With assistance from Manuel Baigorri.To contact the reporter on this story: Tim Loh in Munich at email@example.comTo contact the editors responsible for this story: Eric Pfanner at firstname.lastname@example.org, Thomas MulierFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
German sportswear makers Adidas and Puma warned on Wednesday of a major decline in sales in China due to the coronavirus and said while there were early signs of improvement there the impact had spread to other markets. Shares in Adidas and Puma, already pummelled in the last few weeks, were down 10% and 3.2% respectively at 1509 GMT. Adidas said it expected first-quarter sales to drop by up to 1 billion euros (850.2 million pounds) in greater China, and overall to fall more than 10%, including a drop of about 100 million euros in Japan and South Korea.
German sportswear maker Adidas expects first-quarter sales to drop by up to 1 billion euros ($1.14 billion) in greater China due to the coronavirus and while business is picking up there it is now being hit in Japan and South Korea. China accounted for 20% of Adidas sales in 2018. It sells its products from about 12,000 stores in China, most franchises plus fewer than 500 of its own stores.
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...
German sportswear makers Adidas and Puma have both warned that the coronavirus outbreak was hurting their business in China due to store closures and fewer Chinese tourists travelling and shopping in other markets. Adidas and Puma make almost a third of their sales in Asia, which has been a major growth market for the sporting goods industry in recent years. The region is also the main sourcing hub, with China a major producer for both companies.
(Bloomberg Opinion) -- Any new chief executive likes to make their own mark. For Patrik Frisk, who took the helm of Under Armour Inc. last month, there’s even more reason than most. While founder Kevin Plank has ceded the role of CEO, he’s staying around as chairman and brand chief at the maker of athletic apparel.At first glance, the surprise sales and profit warning that Frisk, who spent two-and-a-half years as chief operating officer, announced on Tuesday, looks like the last thing he would have wanted to unleash on investors during his first update. And that’s not all: Under Armour is also considering another restructuring,To be fair, some of the cut to revenue guidance is down to the coronavirus – a risk shared with rivals Nike Inc. and Adidas AG. But it is also due to a decline in sales in North America, where efforts to rein in discounting and concentrate on the style, fit and performance of apparel have taken longer to bear fruit. Profit estimates were also lowered: The mid-point of the $105 million to $125 million range would imply a halving of operating earnings from 2019, according analysts at Bernstein.The big downgrade is clearly unwelcome to investors, who may be forgiven for thinking they have been here before. The group has been restructuring, including cutting jobs, for the past three years. However, such a dramatic lowering of guidance does provides more leeway to try to fix the U.S. business, where more work is clearly needed, and potentially scope to outperform later on. There were some bright spots. Under Armour’s gross margin, which expanded by 1.8 percentage points in 2019, is forecast to widen by another 0.3 to 0.5 percentage point this year. Inventories are also falling, and the wholesale market is showing signs of stabilizing.Under Armour’s reduced outlook also paves the way for more cost-cutting. Taking an ax to expenditure could lead to savings of $30 million to $50 million in 2020, even though this could cost as much as $425 million in pre-tax charges. Of this, $225 million to $250 million relates to the possibility of foregoing opening a flagship store in New York. Pausing this project looks wise given the outlook. So Frisk may be erring on the side of caution as he takes the reins.But there’s still considerable uncertainty as to whether Under Armour’s strategy — focused foremost on performance rather than fashion — will pay off. Meanwhile, competition from Nike and Adidas isn’t getting any easier, with the latter pushing ahead with its collaboration with Beyonce. Add in a federal investigation into Under Armour’s accounting practices, and whether Plank will be able to relinquish some control and the outlook remains highly uncertain.After under-promising, Frisk has little choice but to over-deliver.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
You can share your thoughts with Thyagaraju Adinarayan (email@example.com), Joice Alves (firstname.lastname@example.org), Julien Ponthus (email@example.com) in London and Danilo Masoni (firstname.lastname@example.org) in Milan. Many global retailers have come out with coronavirus warnings, shutting down some stores in mainland China, but there hasn't been much details on the financial impact.
You can share your thoughts with Thyagaraju Adinarayan (email@example.com), Joice Alves (firstname.lastname@example.org), Julien Ponthus (email@example.com) in London and Danilo Masoni (firstname.lastname@example.org) in Milan. Many global retailers have come out with coronavirus warnings, shutting down some stores in mainland China, but there hasn't been much details on the financial impact. For instance, Burberry today said 40% of its stores in mainland China are closed due to the fast-spreading virus but did not quantify the financial impact.
German sportswear company Adidas on Wednesday said it was temporarily shutting a "considerable" number of its stores in China due to the coronavirus outbreak. Adidas has about 12,000 outlets in China, including franchise stores. Adidas saw sales growth slow to 11% in China in the July-September period from 14% in the second quarter.