Adidas profits hit by under performing Reebok brand
Sportswear giant Adidas has reported a fourth quarterly loss in 2012 of £207m following lower than expected growth at its Reebok brand.
Adidas was forced to write off 265m euros to reflect the worsening outlook which has already seen 2015 sales targets slashed by a third.
Reebok has been particularly hard hit in the Americas where a range of sports shoes claimed to improve muscle tone have failed to spark the expected levels of interest.
A series of global incidents have compounded this problem including discovery of fraud in its Indian division and a US National Hockey League dispute which has seen fewer games played this season.
In response Adidas is trying to reposition the brand, which it purchased in 2005, as shoe of choice for specific exercises such as yoga and dance.
Adidas' chief executive Herbert Hainer, said: "2012 has been another successful year for the Adidas group.
"Our products and brands were again at the fore, not only being the most visible at the year's major sports events, but also enjoying several important market share victories along the way."