Adidas shares fall 11% as market weakness kicks

The German company lowered its forecast for this year’s operating margin to 4% from 7% in the surprise update

Adidas said the gloomier outlook will likely lead to an overhang of stocks that will have to be discounted.

The next chief executive at Adidas is set to inherit an even tougher job after the company warned that unsold goods are piling up as consumer demand weakens across China and western markets. 

That sent the German sport clothing maker’s shares slumping by 11%.