[ad_1]
(Reuters) – Adidas (ADDYY) shares dropped 4% on Monday after the German sportswear model stated it was investigating allegations of corruption in China after receiving an nameless letter.
“Adidas takes allegations of potential compliance violations very severely and is clearly dedicated to complying with authorized and inner laws and moral requirements in all markets the place we function,” it stated in an announcement.
Adidas shares have been down 4% at 216 euros by 1030 GMT. The corporate stated it couldn’t present additional data till its investigation is accomplished.
The claims “spotlight the challenges many firms face in sustaining constant oversight and management of their digital operations within the Chinese language market,” stated Jacques Roizen, managing director of China consulting at Digital Luxurious Group in Shanghai.
Over the previous 18 months Adidas has been working to spice up gross sales in China, after dropping vital market share to rivals since earlier than the COVID-19 pandemic.
“This might additionally jeopardize the aim of lastly regaining a foothold in China after the large slumps of the previous 4 years,” stated Juergen Molnar at brokerage RoboMarkets.
(Reporting by Casey Corridor in Shanghai and Zuzanna Szymanska in Berlin, Writing by Helen Reid in London; Enhancing by Alexander Smith)
[ad_2]
Source
