Adidas' Indian 'irregularities'
Tuesday 01 May 2012
Adidas, the sports brand with the famous three stripes, revealed yesterday that it is dealing with certain unexplained "commercial irregularities" at its Indian arm.
The company has begun an investigation into the issue, but declined to give details.
The German giant said it planned to make "significant changes to its commercial business practices" in India and had brought in new, local management last month.
"Due to the sensitivity of the ongoing investigation, specific details will be disclosed as appropriate in due course," Adidas said.
Meanwhile, the company has just raised its profit goals for 2012 after a strong first quarter. Sales rose 17 per cent to €3.8bn (£3.1bn), while profits leapt 38 per cent to €289m.
The quarter was Adidas's fifth in a row of double-digit sales growth.
Its chief executive Herbert Hainer said investments were "yielding an unprecedented period of growth for the group".
The Indian issue, whatever it is, could end up hitting the accounts by up to €125m. Adidas shares rose more than 6 per cent in early trade yesterday to a record €63.75.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
iJobs Money & Business
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £25000 per annum + OTE £35000: SThree: SThree are a global FTSE 250 b...