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Nov. 11, 2021, 8:28 a.m. EST

Adidas tumbles in Europe as supply-chain woes and a tough China market hit results

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By Barbara Kollmeyer

Adidas shares tumbled in Europe on Wednesday after the German sportswear maker cut guidance over a familiar struggle in many sectors — supply-chain worries — in addition to a difficult market in China.

A top decliner, Adidas /zigman2/quotes/206448829/delayed XE:ADS +0.54% fell 5% after saying it now expects full-year top and bottom lines to be at the lower ends of guidance . The sportswear maker reported a 600 million euros ($696 million) hit to quarterly revenue due to a challenging China market, COVID-related lockdowns across Asia and supply-chain disruptions.

Management had guided for those woes in August. Shares have underperformed Nike /zigman2/quotes/203439053/composite NKE +1.47% , Puma /zigman2/quotes/203655455/delayed XE:PUM +0.13% and the global sporting goods sector, year to date, but “are unlikely to recover near-term, we think, until current supply chain and Covid-related disruption diminish.,” Citi analyst Thomas Chauvet told clients in a note.

Still, he said these are “temporary factors” and unlikely to compromise the company’s ambitious “Own the Game” 2025 growth targets introduced in March, and Chauvet is sticking to a buy rating.

Shares of Adidas rival Puma fell 1.7%

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP +0.73% slipped 0.2% to 482.12. Of the major regional indexes, the German DAX /zigman2/quotes/210597999/delayed DX:DAX +0.72% was flat, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.20% declined 0.3% and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +1.19% increased 0.5%.

The softer action for stocks came with Wall Street headed for a weaker day of trading as October consumer prices came in higher than expected on several measures. It comes on the heel of a surge in China producer prices to the highest level since 1996 reported on Wednesday. Consumer prices also rose in the country.

In Europe, German consumer prices rose 4.5% on the year, which were in line with the forecasts of economists polled by The Wall Street Journal.

The biggest Stoxx 600 gainer Marks & Spencer /zigman2/quotes/206225481/delayed UK:MKS +2.47% , up 15% after the U.K. retailer swung to a pretax first-half profit and lifted guidance. Just behind it was ITV /zigman2/quotes/205378065/delayed UK:ITV +3.14% , which rose 14%, The U.K. broadcaster said it expects advertising revenue to rise on the year in its crucial fourth quarter, and has struck a long-term commercial partnership deal with Virgin Media.

Another big gainer was Swedish retail chain ICA Gruppen , with those shares up as the company said it has received a takeover offer that values the company at 107.4 billion Swedish kronor ($12.5 billion).

Siemens Energy shares /zigman2/quotes/221435471/delayed XE:ENR -0.91% rose 2.4% after the German energy company reported narrower losses in its fiscal fourth quarter on higher revenue and issued guidance for fiscal 2022. Shares of rival E.ON /zigman2/quotes/206607864/delayed XE:EOAN +0.89% rose 1% after reporting higher profit and sales in the third quarter, and backing its forecasts for the year.

The biggest Stoxx 600 faller was S4 Capital /zigman2/quotes/205349661/delayed UK:SFOR +6.66% , which fell 10% after the digital advertising and marketing-services company reported in-line revenue growth as strong momentum continued in the third quarter.

Infineon Technologies /zigman2/quotes/203152288/delayed XE:IFX -0.43% posted higher profit and revenue in the fourth quarter of fiscal 2021 as it continued to benefit from high demand for semiconductors, and said it expects a strong fiscal 2022. But the German chipmaker’s shares slipped 1%.

/zigman2/quotes/206448829/delayed
XE : Germany: Xetra
172.80
+0.92 +0.54%
Volume: 1.04M
May 20, 2022 6:30p
P/E Ratio
16.43
Dividend Yield
1.91%
Market Cap
€33.02 billion
Rev. per Employee
€346,379
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/zigman2/quotes/203439053/composite
US : U.S.: NYSE
$ 108.00
+1.56 +1.47%
Volume: 7.62M
May 20, 2022 4:00p
P/E Ratio
28.54
Dividend Yield
1.13%
Market Cap
$169.97 billion
Rev. per Employee
$639,754
loading...
/zigman2/quotes/203655455/delayed
XE : Germany: Xetra
62.08
+0.08 +0.13%
Volume: 542,326
May 20, 2022 6:30p
P/E Ratio
28.90
Dividend Yield
1.16%
Market Cap
€9.29 billion
Rev. per Employee
€444,577
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/zigman2/quotes/210599654/delayed
XX : STOXX
431.10
+3.11 +0.73%
Volume: 0.00
May 20, 2022 11:03p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
13,981.91
+99.61 +0.72%
Volume: 83,084
May 20, 2022 6:30p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,285.24
+12.53 +0.20%
Volume: 92,863
May 20, 2022 6:05p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,389.98
+87.24 +1.19%
Volume: 722,321
May 20, 2022 4:56p
loading...
/zigman2/quotes/206225481/delayed
UK : U.K.: London
136.90 p
+3.30 +2.47%
Volume: 5.68M
May 20, 2022 4:35p
P/E Ratio
107.80
Dividend Yield
0.00%
Market Cap
£2.68 billion
Rev. per Employee
£146,170
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/zigman2/quotes/205378065/delayed
UK : U.K.: London
71.52 p
+2.18 +3.14%
Volume: 12.32M
May 20, 2022 4:35p
P/E Ratio
7.67
Dividend Yield
4.61%
Market Cap
£2.86 billion
Rev. per Employee
N/A
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/zigman2/quotes/221435471/delayed
XE : Germany: Xetra
16.94
-0.16 -0.91%
Volume: 1.92M
May 20, 2022 6:30p
P/E Ratio
N/A
Dividend Yield
0.59%
Market Cap
€12.10 billion
Rev. per Employee
€304,304
loading...
/zigman2/quotes/206607864/delayed
XE : Germany: Xetra
10.05
+0.09 +0.89%
Volume: 6.87M
May 20, 2022 6:30p
P/E Ratio
5.55
Dividend Yield
4.88%
Market Cap
€26.19 billion
Rev. per Employee
€1.23M
loading...
/zigman2/quotes/205349661/delayed
UK : U.K.: London
291.60 p
+18.20 +6.66%
Volume: 2.85M
May 20, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£1.58 billion
Rev. per Employee
£211,457
loading...
/zigman2/quotes/203152288/delayed
XE : Germany: Xetra
27.73
-0.12 -0.43%
Volume: 4.78M
May 20, 2022 6:30p
P/E Ratio
22.44
Dividend Yield
0.97%
Market Cap
€36.08 billion
Rev. per Employee
€242,363
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