Adidas Stock Slides 17% as Investors Balk at World Cup Spending
Dow Jones07-30
Adidas stock fell as much as 17% after the sportswear maker posted lower-than-expected earnings this quarter.
This puts the stock on pace for its largest-ever percentage drop on record.
Adidas said sales rose 14%; operating profit came in at 574 million euros, or $658.2 million, up 5.1% from the same period last year, but below analyst estimates of EUR623 million.
The disappointment appeared to be down to higher marketing expenses during the World Cup, RBC Capital Markets analyst Piral Dadhania said.
The German company also chose not to lift its profit target for the rest of the year, likely adding to the disappointment. The outlook doesn't reflect potential U.S. tariff refunds, it said.
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