FRANKFURT – German shoe and sports equipment company Adidas AG says first-quarter net profit fell 34 per cent as currency exchange rates and changes at its TaylorMade golf business weighed on the bottom line.
Net income fell to 204 million euros ($283 million) from 308 million euros in the same quarter last year. Group revenues fell 6 per cent to 3.533 billion euros.
The company said Tuesday currency translation effects “had a significant negative impact” on sales. A stronger euro shrinks revenues in other currencies when they are converted to euros for the earnings statement. Revenues were “stable” without the currency effect.
The quarter’s earnings were hit by double-digit sales declines at TaylorMade-Adidas Golf. The company is making “strategic changes” at the business to align shipping and product launch cycles with market demand patterns.