|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||121.42 - 124.24|
|52 Week Range||87.65 - 176.36|
|Beta (5Y Monthly)||0.88|
|PE Ratio (TTM)||27.89|
|Forward Dividend & Yield||1.88 (1.60%)|
|Ex-Dividend Date||May 09, 2019|
|1y Target Est||173.43|
A long list of retail chains are closing their U.S. stores amid coronavirus, including Nike and Under Armour, but a few chains aren't following the trend just yet, including Adidas. Yahoo Finance's Seana Smith, Dan Roberts, and Andy Serwer discuss.
As the coronavirus continues to spread, the retail industry is feeling the impact. Sports apparel giant Adidas and Puma both shared that it is going to see a $1 billion dollar decline to China sales due to the new COVID-19 virus. Yahoo
Yahoo Finance talks with Levi's CEO Chip Bergh about the company's latest earnings and the future of retail following the coronavirus outbreak.
Cities and communities would see economic benefit while hundreds of millions of dollars are raised for charity.
(Bloomberg) -- Adidas AG is seeking more than 1 billion euros ($1.1 billion) in German government aid as it grapples with the fallout of the coronavirus pandemic, people familiar with the matter said.The sporting goods maker is in talks with German state-owned bank KfW about a financing package, according to the people, who asked not to be identified because the information is private. Adidas has been discussing a range of around 1 billion euros to 2 billion euros in loans, though the final amount and timing haven’t been decided, the people said.Shares of Adidas fell as much as 4.9% Friday. They were down 3.9% at 2:55 p.m. in Frankfurt, making the company the worst performer on Germany’s benchmark DAX index, which was little changed.Adidas said this week it’s reversing an earlier decision to not make April rent payments for its shops in Germany following a public backlash. Most non-food retailers in Europe’s largest economy are closed until at least April 20 to stop the further spread of Covid-19.Chief Executive Officer Kasper Rorsted recently told a German newspaper that while the company won’t need direct government support, Adidas and the economy as a whole will need credit. A representative for Adidas declined to comment further. A representative for KfW also declined to comment.The state-owned bank launched a loan program on March 23 to help companies facing a liquidity shortage. About 2,500 companies have applied for loans totaling 10.6 billion euros.Tour operator TUI AG said last week it secured a 1.8 billion-euro loan from KfW in one of the biggest bailouts in Germany so far. Consumer electronics retailer Ceconomy AG is also among firms that are seeking to participate in the program, Bloomberg News has reported.(Updates with share movement in third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Adidas has reversed its decision to suspend rent payments on stores closed by the coronavirus lockdown, but warned that it could not bear the standstill in business activity for long. “We profusely apologise for this,” Adidas wrote. Asked if the decision not to defer rents would apply for May as well, Adidas told the Financial Times it hoped it would reopen shops next month.
The dangers of doing business in the age of Covid-19 were brought home to Adidas in stark fashion last weekend. A German member of parliament filmed himself setting an Adidas shirt on fire in a trash can. Finance minister Olaf Scholz said the group’s conduct was “irritating”, while Katarina Barley, vice-president of the European Parliament, denounced it as “shabby”.
German politicians have rounded on Adidas after the sportswear group made use of the government’s emergency response to the Covid-19 crisis by holding back rent payments on its shops. Olaf Scholz, the German finance minister, told the Bild newspaper on Sunday that it was “irritating when big companies simply announce a halt to rental payments”. Katarina Barley, a prominent Social Democrat politician who currently serves as vice-president of the European Parliament, said she would boycott Adidas products.
(Bloomberg Opinion) -- As measures to curb the coronavirus heap pressure on the global retail sector, observers have struggled to quantify the economic ramifications. There are signs that affected companies are offering some useful disclosure that may in turn help sentiment. Adidas AG last week outlined a roughly $1 billion reduction in first quarter sales and $500 million impact on operating profit, but that was before many countries outside Asia started taking aggressive steps in response to the crisis.Now Next Plc has provided more expansive detail about how it sees the months ahead. With shares in most retailers in freefall – Next is down about 40% this year – investors needed to hear something constructive. While the U.K. fashion chain said it could not give guidance for the full year, it has produced a stress test that outlines potential outcomes.In a worst-case scenario, full-price sales would be down by about 1 billion pounds ($1.16 billion), a quarter of its total, which would mean pre-tax profits of just 55 million pounds for the financial year (against 729 million pounds in the year earlier).The company has also set out how it might cope with the crisis financially, given the possibility of extended store closures. It could suspend buy-backs and dividends, delay capital expenditure, sell and lease a warehouse and partly securitize customer debts. Pulling these levers could provide an extra 835 million of cash. Bringing forward its forthcoming sale, and pushing back deliveries of stock would free up another 100 million pounds.These projections exclude any use of government lending or measures to help pay wages, and Next is conservatively assuming no rent reductions from landlords.This disclosure dashboard sets a good example for others to follow. But Next can afford to be upfront with its investors. It is one of the strongest retailers in the U.K. sector.Similarly, Burberry Group Plc provided some near-term clarity, warning that fourth-quarter comparable sales in its stores would be down by 30%, with a 70-80% decline in the final weeks through to its March 31 financial year-end. Like Next, the luxury group has a strong balance sheet, with the company forecasting a cash balance of 600 million pounds before lease obligations.It is understandable why weaker chains may be less willing to quantify the impact on their businesses. But their investors will expect a similar assessment of possible scenarios. And larger, well-resourced chains have no such excuse for not saying more.Take Inditex SA, the world’s biggest clothing retailer. It said the outbreak had cut its sales by 24% between March 1 and March 16. But it didn’t outline the potential full-year impact. This is from a company with record net cash of 8.1 billion euros ($8.7 billion) at January 31.There will be many more tough announcements over coming weeks as retailers and restaurants outline the financial cost of what is happening now. But even if they can’t make exact predictions, they should learn from Next’s example and aim to at least give the market a toolkit for understanding the resilience of their business. Next shares’ strong gain in a falling market on Thursday suggests transparency is rewarded.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Closeageddon is how analysts at Jefferies are describing the retail store shutterings in the U.S.With chains run by big names such as Nike Inc, Apple Inc and Hennes & Mauritz AB closing doors, and icons including Macy’s and Bloomingdale’s joining them, the challenge facing the sector is worsening.Adidas AG warned last week that the suspension of store trading in China would cost it about $1 billion in lost sales. Add in closures across the U.S. and Europe, and multiply that by the number of household names retreating, and the bill to the retail industry may be astronomical.Stacey Widlitz of SW Retail Advisors estimates first quarter revenue will be down by 50-70% on average for global retailers.While sales are evaporating, overheads still need to be paid. This brings into focus the financial strength of parts of the global sector. Those that have been doing well for a long time, including Nike Inc. in the U.S. and Industria de Diseno Textil SA (Inditex) in Europe should have the resources to cope. H&M has little borrowing.But many retailers were already struggling going into this crisis – think of some of the U.S. department stores. Those trying to implement turnarounds, such as Victoria’s Secret, which parent L Brands Inc. has agreed to partially sell, and Under Armour Inc. now face additional hurdles.Gap Inc. has been trying to revive its namesake brand. At least its balance sheet is in decent shape. The same can’t be said for the likes of JC Penney Co Inc. and J Crew Group Inc., the private-equity owned clothing retailer that plans to spin off its Madewell unit to cut debts. With markets experiencing unprecedented volatility, there must be a question mark over this transaction, and maybe even the Victoria’s Secret deal.Retailers would ideally want to stand by staff for as long as they can. It may be hard to imagine at present, but when the virus eventually recedes and activity picks up stores will need their workforces. Yet the pressures to cut back will be immense. The likely first move will be to reduce the temporary workforce.Self-help measures are limited. Stock can in theory be moved from shuttered markets to those where there is still demand. The trouble is, with large swathes of Europe and increasing numbers of U.S. cities in lock-down, the regions where non-essential shopping is even permissible are dwindling.Speaking to suppliers about delaying orders, or even cancelling them, particularly if Asian manufacturers are experiencing backlogs, may provide some respite.Where businesses operate from leased sites, landlords will have a role to play. Struggling tenants and mall owners need to have a grown-up conversation about whether payments can be deferred or rents reduced. With demand shifting from physical stores to online for the past decade, landlords are already bruised. But they are in this crisis together with retailers. The mall owners can ill afford more vacant lets. It would be wise to take steps to prevent that now.Such measures will only go so far. The case for targeted government support is pretty clear. One possibility is cheap state-backed loans, as the U.K. announced on Tuesday. In practice, such support may end up helping firms that were already uncompetitive. That may be the price to pay.Tax breaks are another. Again, British retailers have long sought a reduction on property-based “business rates”, which they argue unfairly punishes chains with large bricks and mortar estates. They just got a 12-month holiday from the tax.On both sides of the Atlantic, arrangements are needed so that suppliers can still insure themselves against retailers going bust before they have settled for ordered goods. That risk is elevated right now. If insurance companies pull cover, retailers may be forced to pay for stock up front, putting even more pressure on already strained cash flows. Government can help.Retailers, landlords and lenders will have to come to some accord with each other. Even then, they will struggle to get through this on their own.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Adidas told its employees on Monday it would not yet close U.S. stores because of coronavirus. On Tuesday, it reversed course and closed all U.S. stores.
Nike Inc's revenue could fall by a third in the fourth quarter, Cowen estimated, as the sportswear giant reels from store closures, supply disruptions and the suspension of this year's NBA season due to the coronavirus pandemic. The brokerage expects the 34% decline in Nike's revenue for the quarter to lead to a loss of about 4 cents per share. "Mall traffic may cease in coming weeks and fixed costs and future inventory markdowns create an almost impossible modeling exercise globally," said John Kernan, who is a five-star rated analyst for the accuracy of his earnings estimates on Nike.
Under Armour is closing all its U.S. retail stores through March 28, and says store employees will still get paid during this time.
There's been a major selloff in adidas AG (ETR:ADS) shares in the week since it released its annual report, with the...
The sports industry is spurred by the coronavirus pandemic, leading to the banning of sports events and soft demand. How the sporting goods retailers deal with the situation remains to be seen.
Unfortunately for some shareholders, the adidas (ETR:ADS) share price has dived 39% in the last thirty days. Even...
The rapid spread of COVID-19 in certain European countries is one reason that the Trump administration has banned the entry of foreign nationals arriving from 26 European nations into the U.S. for 30 days.
U.S. stock indexes extended their declines on Wednesday after the World Health Organization classified the coronavirus outbreak as a pandemic. A Reuters report that the White House has ordered federal health officials to treat top-level coronavirus meetings as classified in an unusual step compounded the skittish sentiment on trading floors. Expectations that President Donald Trump would announce "major" support measures helped Wall Street claw back losses on Tuesday from a bruising sell-off at the start of the week on the back of a collapse in oil prices.
U.S. stock indexes tumbled on Wednesday as investors worried over the absence of immediate measures from President Donald Trump's administration to counter the economic fallout from the coronavirus outbreak. The Dow Jones Industrial Average fell 4.59%, the biggest decliner among the major indexes, also weighed down by a 10% drop in shares of constituent Boeing Co. The planemaker plans a full drawdown of an existing $13.8 billion loan as early as Friday, a source told Reuters. Expectations that Trump would announce "major" support measures helped Wall Street claw back losses on Tuesday from a bruising sell-off at the start of the week on the back of a collapse in oil prices.
Adidas expects Covid-19 to deal its business in China a serious blow to start the year. The German sports company said today that while sales in mainland China, Taiwan, and Hong Kong were strong in the first three weeks of 2020, the outbreak of the new coronavirus has hit them hard after it closed a significant number of stores. Between Chinese New Year on Jan. 25 and the end of February, sales in greater China were down 80% versus the prior year.