The recession is truly changing the playing field. Even events that consistently boost sales for companies are failing to beat the recession.

• Big sportswear companies typically see an increase in sales when huge events like the World Cup come along, but this year Adidas (ADDDF) is struggling more than usual.
• Even after a rough first quarter, the company is optimistic about the boost they’ll receive from the 2010 World Cup in addition to a recent management overhaul and widespread layoffs.
• However, excessive supply of product along with rising unemployment and the continuing recession throughout Europe may negate any earnings increases the World Cup brings.

Facts & Figures

• Adidas (a German company) reported a 52% sales increase in the wake of the 2006 World Cup.
• In the first quarter of 2009, Adidas’ reported income dropped a staggering 97.2%.
• European retail markets account for approximately half of Adidas’ total sales.

Best Quote

“In Western and Central Europe we will continue to face some tough times.” – Ingbert Faust, Analyst for Equinet