In the 2016 year, Adidas does not exclude the possibility of increasing purchase costs by 500 million euros due to the negative effect of the exchange rate, which has already forced to narrow the product line and raise prices. In 2015, the group spent on 7,3 billion euros to supply shoes, clothes and accessories. The decline in the value of the euro against the dollar could “eat” the entire Adidas margin, as it produces almost all of its products in Asia and contracts are in dollars. Joint efforts with suppliers who, under the circumstances, improve the efficiency of their production, will compensate for the negative consequences of gross margin.
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