Adidas (PINK:ADDYY) has had a tough year in terms of sports sponsorships. First, Nike (NYSE:NKE) snatched its rival’s jersey deal with the National Football League by signing a five-year contract with the league.
And now, Adidas’ Reebok brand is getting shut out of the pro hockey season. Again, this is a two-pronged problem. It will mean fewer sales of hockey jerseys to fans, for one. But it will also hurt Reebok’s promotional efforts because it sponsors the jerseys and endorses countless popular players.
Yesterday, Adidas pointed to underperformance in its Reebok division and the lockout when it lowered its sales guidance. Adidas was originally expecting a 10% growth rate, but now it sees improvements only in the high single digits.
Shares fell more than 2% on the announcement, despite the fact the sporting goods company posted a growth in profits and revenue in the third quarter.