German sportswear giant Adidas faces regulatory scrutiny as authorities launched extensive raids at multiple strategic locations, including the company’s headquarters in Herzogenaurach. The investigation, spanning from October 2019 to August 2024, centers on potential irregularities in customs and tax import regulations. The probe particularly focuses on the company’s shoe factory in Scheinfeld and its central logistics hub near Osnabrück, where Bavarian tax investigators and customs officials conducted thorough examinations. The news immediately impacted the company’s market performance, with Adidas shares dropping by three percent in after-hours trading compared to the XETRA closing price.
Financial Outlook Remains Stable
Despite the ongoing investigation, Adidas maintains a positive financial trajectory, with Moody’s recently upgrading its outlook from negative to stable. The Rating agency has affirmed both the company’s A3 long-term and Prime-2 short-term ratings, citing improved business performance through September 2024 and projected stabilization of financial metrics over the next twelve to eighteen months. The company, which primarily manufactures its products in Asian countries, anticipates minimal financial impact from the current investigations and emphasizes its continued cooperation with authorities.
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Adidas Stock: New Analysis – 12 December
Fresh Adidas information released. What’s the impact for investors? Our latest independent report examines recent figures and market trends.
Read our updated Adidas analysis…
German sportswear giant Adidas faces regulatory scrutiny as authorities launched extensive raids at multiple strategic locations, including the company’s headquarters in Herzogenaurach. The investigation, spanning from October 2019 to August 2024, centers on potential irregularities in customs and tax import regulations. The probe particularly focuses on the company’s shoe factory in Scheinfeld and its central logistics hub near Osnabrück, where Bavarian tax investigators and customs officials conducted thorough examinations. The news immediately impacted the company’s market performance, with Adidas shares dropping by three percent in after-hours trading compared to the XETRA closing price.
Financial Outlook Remains Stable
Despite the ongoing investigation, Adidas maintains a positive financial trajectory, with Moody’s recently upgrading its outlook from negative to stable. The Rating agency has affirmed both the company’s A3 long-term and Prime-2 short-term ratings, citing improved business performance through September 2024 and projected stabilization of financial metrics over the next twelve to eighteen months. The company, which primarily manufactures its products in Asian countries, anticipates minimal financial impact from the current investigations and emphasizes its continued cooperation with authorities.
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Fresh Adidas information released. What’s the impact for investors? Our latest independent report examines recent figures and market trends.