adidas Earnings Plummet, Taylor-Made Product Cycle Blamed
/Allan Brettman reports on adidas suffering a 34% profit drop and a 20% dip in North American sales. The company chalked up some of its problems to "double-digit sales declines" at Taylor-Made.
The quarter's earnings were hit by double-digit sales declines at TaylorMade-Adidas Golf. The company is making "strategic changes" at the business to align shipping and product launch cycles with market demand patterns.
Those sales declines contributed to the 20 percent drop-off in Adidas revenue in North America during the quarter, primarily because of the TaylorMade strategic shift, the company said. The golf unit accounted for more than half the sales decline in the region.
The company introduced three drivers in 2013 and there was much customer dissatisfaction with the rapid product cyle.
