Russia is Not Kicking the Right Game for Adidas, Will Brian Cornell Hit His Target? And BofA’s Boffo Payout

From Russia with loss…

Sira Anamwong/FreeDigitalPhotos.net

Sira Anamwong/FreeDigitalPhotos.net

Adidas lowered its full year profit target thanks to Russia. And golf. But not Russian golf, it should be duly noted. Despite the fact that Russia is hosting the 2018 World Cup, the world’s second largest sporting goods maker and World Cup sponsor decided to shutter a bunch of stores and scrap plans to open a bunch more in that region. But hey, that’s what happens when your governmemt supports Ukranian rebels. The German-based company is weary of Russia and its ability to pull in the sales it has in the past because of all those sanctions coming courtesy of Europe and the US. Which is really too bad because sales in Russia for the brand were over 1 billion euros in 2013. Now Adidas expects net profit of 650 million euros when it previously expected those numbers to be between 830 million euros and 930 million euros. Go ahead and do the dollar conversion math. Just kidding. Adidas initially expected net profit between $1.1 billion and $1.2 billion but now it doesn’t even expect to go past $870 million. As for the company’s Taylor-Made golf division…well, it’s golf. And not soccer. And across the pond that means a lot.

Hit or miss?

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Target’s making big news today. And no it’s not for any security breaches or lousy earnings. Well at least for now, anyway. The news out of the Minneapolis-based company is the appointment of its new CEO Brian Cornell, the first CEO in Target’s history to come from outside the company’s ranks. The 55 year old Cornell recently held a big gig over at Pepsi and some rumors said he was going to be the successor to the throne there. But instead he made his way to the embattled Target, which is currently experiencing declining same store sales, a troubled Canadian expansion (Oh, Canada) and continuing fall out from its holiday season security breach. So take a seat and let’s watch to see if the seasoned exec can pull the retail giant out of its slump and get that stock back on the upswing.

Another one bites the dust…

Image courtesy of hin255/FreeDigitalPhotos.net

Image courtesy of hin255/FreeDigitalPhotos.net

And this time it’s Bank of America as a Manhattan judge ordered the bank to pay a $1.3 billion fine for mortgage fraud. Mind you this is not part of settlement talks that Bofa is currently having with the US Department of Justice. This latest penalty was from an actual lawsuit that BofA lost that and was connected to “The Hustle” program. As sexy as that sounds it is anything but as loans that were made at Countrywide Financial were rushed to “High Speed Swim Lanes (HSSL)” and sold to Fannie Mae and Freddy Mac. Oh if only the actual dealings were as playful as the terms used to describe the dubious actions behind them. Bofa was found guilty of getting its employees to take bad loans off the books and put them right into the hands of unwitting investors. As for the DOJ settlement, the US wants BofA to pony up $17 billion while the bank was looking more toward the area of between $12 billion to $13 billion. The two sides continue to hash out the ugly details, even, I am sure, as I write this. The company released its second quarter earning weeks ago to the tune of a 43% drop thanks to its declining mortgage business and increasing legal fees.

 

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2 responses to “Russia is Not Kicking the Right Game for Adidas, Will Brian Cornell Hit His Target? And BofA’s Boffo Payout

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