The company blamed many factors, including Russia:
Adidas also said it was scaling back investment in Russia, where it runs more than 1,000 stores, due to a fall in the rouble since the start of the Ukraine crisis and increasing risks to consumer sentiment and spending there.
“Current tensions in the region point to higher risks to the short-term profitability contribution from Russia/CIS,” it said, adding it would significantly reduce its store opening plan for 2014 and 2015 and increase the number of store closures.
Adidas had said as recently as last month it had not seen any impact on its business in Russia – beyond the translation effect of the weaker rouble.
This brings to mind a hilarious incident from the spring, when Russian Communist Party head Gennady Zyuganov shocked Russian sensibilities by wearing an Adidas track suit while laying flowers on Stalin’s grave:
Russian Communist Party leader Gennady Zyuganov caused a stir on the Russian blogosphere for laying flowers at the grave of Soviet dictator Josef Stalin while wearing an Adidas tracksuit jacket.
A Twitter user who registered under the name “Josef Stalin” quipped: “Zyuganov showed up in an Adidas tracksuit top, a white shirt and dress shoes. [I’d have had him] shot for this outfit!”
Zyuganov made the dress code blunder on Sunday at a ceremony on Red Square to mark the 92nd anniversary of the establishment of the pioneers, a Soviet-era Communist youth organization.
But the best part was Zyuganov’s excuse:
He told the Russian News Service radio station that he wore it because “nobody makes good tracksuits yet in our country.” He did not specify why he had to wear a tracksuit jacket at all, but perhaps it was its red color that made the Communist leader warm to the garb.
His gaffe may have caught people’s attention because Adidas goods symbolized capitalist swank for many Soviet people under the Communist regime.
Yeah. Capitalist swank. That’s why the Russian equivalent of chavs wear them.
Rest assured. Zyuganov swears he has no promotional contract with Adidas. It was purely a fashion statement.
If Russia can’t make a good track suit, then good luck with that self-reliance that Putin, Lavrov, Medvedev and Rogozin the Ridiculous are promising in high tech goods, military equipment and finance in the aftermath of the sanctions. I’m sure it will all work out swell.