A grim warning from Adidas has sent chills down the spine of the sportswear industry.
The German company was the latest to warn about its profits, following Nike, Puma and JD Sports who all said shoppers were less willing to spend on expensive shoes.
The update saw Adidas fall 2.1 per cent in Frankfurt while JD Sports fell 1.8 per cent, or 2.1p, to 114.95p in London. Adidas said its shares fell 5 percent to £17 billion in 2023.
And he warned of further challenges in selling his remaining stock of Yeezy sneakers after an ill-fated partnership with Kanye West ended.
As a result, it expects to make profits of £427m in 2024, well below the £1.1bn expected by the market.
Adidas was the latest sports company to warn about profits, following Nike, Puma and JD Sports who all said shoppers were less willing to spend on expensive shoes.
Managing director Bjorn Gulden said: “We of course know that our financial performance is not good. But we are on the verge of making Adidas a good company again.
Russ Mould, investment director at AJ Bell, said: “Some of Adidas’ problems are of its own making.
His association with Kanye West backfired. Celebrity endorsements are all well and good, but going too far carries many risks, given that anyone you associate with is human and therefore inherently unpredictable.
Other retailers have come under pressure following broker downgrades. Then it fell 2 percent, or 166p, to 8302p, Dr Martens fell 4.3 percent, or 3.85p, to 85.25p and Pets at Home fell 6 percent, or 16, 8p, to 263.4p.
Across the market, the FTSE 100 fell 0.1 percent, or 8.41 points, to 7,622.16, while the FTSE 250 fell 1.2 percent, or 226.79 points. , at 19,131.16.
The City hosted the first public float of the year. Microsalt, a low sodium salt producer, listed its shares at 43p.
This valued the company at £18.5m. The stock rose 17.4 per cent, or 7.5p, to 50.5p.
A major vote of confidence from analysts sent Marshalls shares higher. Investment bank Berenberg has raised its rating on the landscaping group, saying that despite the “pretty torrid times” it has been through recently, there are still reasons to be optimistic.
This includes the appointment of general manager Matt Pullen earlier this year. Shares gained 4.1 per cent, or 11.4p, to 292p.
North Sea producer Serica Energy is looking for a new chief executive, with boss Mitch Flegg considering ending his six-year tenure, less than three months after Serica CFO Andy Bell, announced to the board of directors that he wished to resign. Shares fell 2.7p per cent, or 5.6p, to 206p.
Rightmove has bought Home Views, a company which helps potential residents make more informed decisions about where to live by publishing reviews of property developments, for £8 million.
Rightmove shares rose 1.4 per cent, or 7.8p, to 568p.
Private equity firm 3i – down 5.2 per cent, or 128p, to 2,351p – said Action, the Dutch discount retailer and the most successful business in its portfolio, had achieved bumper annual sales .
But he added that some of his other investments have been hit by tough economic conditions.
Mining giant Glencore has maintained its production forecast for this year despite a drop in production in 2023.
This lifted the shares 1.3 per cent, or 5.65p, to 426.1p.
And its strong performance in 2023 enabled British insurer Phoenix to achieve its growth target for 2025, two years earlier than expected.
However, shares fell 0.7 per cent, or 3.4p, to 502p.
Telecommunications company Airtel Africa said it wants to launch an £80m share buyback from March after consolidating its finances. The stock fell 1.3 per cent, or 1.4p, to 110.8p.
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