Adidas Swings to Loss in Q4

PARIS – Adidas ended a tough 2014 on a negative note. The German activewear firm reported a net loss of 139 million euros, or $173.6 million, in the fourth quarter ending Dec. 31. This was largely due to goodwill impairment of 79 million euros, or $101.9 million, and discontinued operations related to the planned Rockport divestiture. Sales in the period advanced 6 percent to 3.6 billion euros, or $4.5 billion, driven by a strong performance in all geographies with the exception of North America, were sales declined 4 percent. For the full year, net profit stood at 496 million euros, or $659 million, down 37 percent. Double-digit sales increases at Adidas and Reebok drove total sales up 2 percent, or 6 percent in currency-neutral terms, to 14.5 billion euros, or $19.3 billion. All dollar rates are calculated at average exchange rates for the period concerned. “2014 was a year with ups and downs for the Adidas group. But we tackled the challenges resolutely and achieved our adjusted top- and bottom-line targets,” said the brand’s chief executive officer Herbert Hainer. “In the fourth quarter, we grew at double-digit rates in Western Europe, Greater China, European Emerging Markets and Latin America. This

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