Adidas shares saw a significant decline this morning, opening more than 15% down. This drop occurred after the sportswear company reported missing its second-quarter profit expectations.
The fall in share value, which reached 17% to €151.20 at the time of writing, happened despite a 14% increase in revenues, which reached £5.7bn. The German firm has, however, maintained its full-year operating profit target of £2bn.
The slump is attributed to a marketing spend of £180m over the last year, with a notable portion directed towards campaigns for the Fifa World Cup held earlier this year. This included a five-minute advert featuring figures such as Lionel Messi and Jude Bellingham.
Adidas has identified running and football as key growth sectors, highlighting a 'super shoe' used by London Marathon winners. The company also has major kit deals with football clubs like Manchester United and Real Madrid, with each agreement reportedly worth over $100m per season.
In other news, Birgit Kretschmer is expected to become the new chief financial officer, taking over from Harm Ohlmeyer when his contract concludes at the end of the year.