BERLIN — Adidas lowered its full-year profit target, citing among other things increasing risk in the Russian market amid mounting political tensions over Ukraine.
Russia’s economy and currency have weakened this year due to uncertainty over the potential damage from Western sanctions. The United States and European Union this week approved a new round of tougher penalties aimed at hurting Russia’s economy, punishment for alleged Russian support for Ukrainian rebels.
Adidas — a sponsor of the World Cup, which is to be held in Russia in 2018 — decided to ‘‘significantly reduce’’ its store opening plan in the region for this year and next, and to increase the number of store closures. It nevertheless ‘‘remains very encouraged by increasing brand momentum’’ for both Adidas and Reebok.
Adidas AG, the German parent of Canton, Mass.-based Reebok International Ltd. , now expects a profit $870 million this year, down from its previous forecast of between $1.11 billion and and $1.25 billion. It forecast that sales will grow at a ‘‘mid- to high-single digit’’ rate in currency-neutral terms, after previously saying they would grow at a high-single digit rate.
Adidas also cited ‘‘poor retail sentiment and the slow liquidation of old inventory’’ worldwide in the golf business. It said it would launch a restructuring program at its TaylorMade golf unit.