BERLIN Aug 7 Adidas, the world's
second-biggest sportswear firm, will increase its spending on
marketing by 1 percent of sales as it seeks to halt the advance
of market leader Nike following a profit warning last
The German group said it planned to increase its target
range for marketing spending to 13-14 percent of sales from a
previous 12-13 percent. Adidas spent about 12.4 percent of its
14.5 billion euros of revenue on sales and marketing in 2013.
Adidas last week cut its sales and net income targets for
2014 and scrapped its goals for 2015, blaming the move on poor
performance at its golf business and volatile emerging market
currencies, particularly the Russian rouble.
Chief Executive Herbert Hainer said Adidas now planned to
add only 80 more stores in Russia this year, down from a
previously-planned 150, with a similar figure for 2015.
That move, as well as a more promotional environment in
Russia, would cut around 50 million euros from operating profit
in the second half, while a planned restructuring at the golf
unit would mean a hit of 50-60 million euros.
(Reporting by Emma Thomasson; Editing by Maria Sheahan)