German sportswear group Adidas has been forced to write off €265 million at its troubled Reebok business during a year in which apart from a fraud uncovered at its Indian unit, it also endured a strike in the National Hockey League and saw a 10-year American football contract come to an end.
The write-down pushed the German-based business into the red by €239 million over the last three months.
Adidas bought Reebok in 2005 for $3.8 billion in an attempt to close the gap on bigger rival Nike but has now cut its 2015 sales target for the brand by a third after two quarters of declining sales.
Adidas sponsored the London Olympics and Euro 2012 football championship, at a cost of £100 million, and gains from those deals helped the firm famous for its three stripes logo recoup some of the losses from Reebok.
Sales in emerging markets are improving, which the economic downturn in Western Europe pushed down 4 per cent, the company said.
Full-year profits were down 3 per cent to €920 million.