Sales were down 6% on a year ago, and the company said it was facing higher raw material and wage costs. Shares in Adidas fell 11% in Frankfurt.It will also carry out a review of under performing retail stores.”Although some of these items will recur again as we go through the balance of the year, I am convinced we will put most of these effects behind us in the current year.”Adidas is the world’s second biggest sporting goods maker after Nike.The German firm bought Reebok in 2006 to help it compete against Nike, but Reebok still struggles, particularly in North America where Adidas saw its sales fall by 14% in 2008.In January Adidas announced it would close its Reebok office in Bolton, ending a 116 year association with the town.Rival Nike has also been hit by falling consumer demand. In March it said it planned to halt production at three shoe factories in China and one in Vietnam.
To all of my Black or mixed race FB friends, I must profess a blissful ignorance of this “White Privilege” of which I’m apparently guilty of possessing. By not being able to fully put myself in the shoes of someone from a background/race/religion/gender/nationality/body type that differs from my own makes me part of the problem, according to what I’m now hearing. Despite my treating everyone with respect and humor my entire life (as far as I know), I’m somehow complicit in the misfortune of others.
Like our partners in any other country, the factories we contract with in China continue to face challenges as well.The report noted problems including falsification of factory documents such as payroll records, lack of effective grievance systems for disgruntled workers and hiring practices that did not ensure minimum age standards were met.Christopher Svezia, an athletic footwear and apparel analyst with Susquehanna Financial, said Nike has made strides over the years to improve labor conditions in China, where about one third of its shoes are made.think there always going to be incremental issues that crop up as China continues to evolve as an entity in terms of labor laws and salaries and working conditions etcetera, Svezia said.you ever get to a point where it 100 percent perfect? I don know, he added.The report said China is Nike largest single sourcing country, with some 180 manufacturers and about 210,000 employees.Last year, Nike rolled out a program to check the identity of some 150,000 of its workers in China and found 167 cases of people who were below minimum age standards when they were hired but were now 18 or older. Two people were found to be underage.Wages in some places were not tracking government mandated raises, the report said.multiple factors drive up the cost of business, we find that some contract factories try to avoid making changes to wages in a timely manner, the report said.In 2005 and 2006, Nike over 6.53 million yuan ($921,300) in back wages owed to workers in China. Last year, it said it recovered more than 500,000 yuan in back pay.