Adidas and Puma fall after Nike margin dip, weak China sales
Shares in German sportswear makers Adidas ADSGn.DE and Puma PUMG.DE fall 2% and 3% respectively in early Frankfurt trade, after rival Nike's NKE.N quarterly results on Thursday
The U.S.-based sportswear giant reported a drop in gross margins for the second consecutive quarter, dragged by poor sales in China and efforts to reset its product mix, sending its shares down 10%
The company expects Q3 revenue, which includes the December holiday shopping period, to be down in the low-single digits, compared to a 1% increase on a reported basis to $12.4 billion in Q2
Jefferies notes markets seem underwhelmed by the scale of Nike's sales acceleration and moderation of gross margin pressures in the months ahead, which may be unhelpful for European peers
"The manner in which this picture will be extrapolated for European peers, or whether investors will simply look at the (double-digit) decline in NKE's share price as the read-across for ADS/PUM, is unclear," the broker adds
Adidas and Puma are seen to trade at bottom of their respective indices .GDAXI and .MDAXI
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