Adidas shares slide record 17% as profit miss taints sales upgrade

Adidas shares dropped a record 17% after the company reported profits that missed expectations. According to Reuters, this significant decline occurred despite the company raising its sales guidance. The drop was attributed to increased marketing spend related to the World Cup.

The impact of World Cup marketing spend on Adidas' profits was a key factor in the disappointing results. Financial Times noted that Adidas shares dropped close to a fifth after profits were hit by World Cup marketing spend. Bloomberg also reported that Adidas profit disappointed due to a jump in World Cup marketing spend.

There appears to be a contrast between some outlets' characterizations of Adidas' Q2 performance. While Yahoo Finance described Adidas' Q2 as 'unbelievably strong', WSJ reported that Adidas shares were on course for a record drop as World Cup spend ate into earnings. The current state is that Adidas shares have slid 17%, according to Reuters.