UKRAINE: Adidas says no impact from Russia conflict in Ukraine
The CEO of Sporting goods giant Adidas says the company has seen no impact on its operations to date as a result of the escalating political situation in Russia and the Ukraine.
Speaking on the firm's earnings call yesterday (5 March), CEO Herbert Hainer told investors its warehouses are all fully functioning at the present time but that it is "monitoring the situation quite carefully" and is in daily contact with management in Russia.
"We look at our individual store base in case the conflict gets bigger. We have less than 10% of our Russian business in Ukraine. All stores are open but we are in daily contact [with management] and we could definitely re-route products relatively fast in preparing for that.
"On the other hand, we obviously want to do business there because as I said before we haven't seen any negative impact and because the people - what we hear, this is daily routine how they live their lives there and we haven't seen anything negative from the people there."
Referring to the company's financial results, Hainer said 2014 had started well in Russia and so far doesn't see any negative impact from the political situation.
"Obviously it would be better if it could be solved peacefully, because as long as it goes on the consumer gets nervous, but we have not seen an impact so far."
Click here to read about plans by Adidas to potentially change its business model in order to help offset significant currency issues.
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