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Adidas sets new margin target after profit warning
August 7, 2014 / 5:56 AM / 3 years ago

Adidas sets new margin target after profit warning

BERLIN, Aug 7 (Reuters) - Adidas, the world’s second-biggest sportswear firm, cut its margin targets for 2014 on Thursday, a week after it issued a profit warning, blaming poor performance at its golf business and volatile emerging market currencies.

Adidas said it was now targeting an operating margin of 6.5-7.0 percent for 2014, from a previous 8.5-9.0 percent and down from 8.7 percent in 2013 as it increases spending on marketing and invests in an expansion of own-run stores.

Adidas, which has been losing market share to rival Nike, already reported last week that second-quarter sales rose 2 percent to 3.47 billion euros($4.64 billion), a rise of 10 percent on a currency-neutral basis. (1 US dollar = 0.7470 euro) (Reporting by Emma Thomasson; Editing by Victoria Bryan)

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