All posts from John123
John123 in John123 - My Blog,

Adidas. Disappointment is overdone.

Adidas, the world’s second-largest sporting-goods maker, fell the most in more than a year after cutting its 2013 profit forecast for reasons that include Russian distribution difficulties and a weak golf market.

The shares slid as much as 5.9 percent to 77.71 euros, the steepest intraday drop since June, 2012. 

Adidas reduced the low end of its profit forecast by 7.9 percent late yesterday, also because of the strength of the euro, which has caused analysts to cut profit estimates in recent weeks. A switch to a new warehouse in Russia led to inventory shortages in the country, while the golf season has started slowly for the maker of TaylorMade clubs. Still, Adidas said it remains confident in its 2015 goals.
I think reaction is overdone and now it is a good time to buy for a bounce.