Sales were down 6% on a year ago, and the company said it was facing higher raw material and wage costs. Shares in Adidas fell 11% in Frankfurt.It will also carry out a review of under performing retail stores.”Although some of these items will recur again as we go through the balance of the year, I am convinced we will put most of these effects behind us in the current year.”Adidas is the world’s second biggest sporting goods maker after Nike.The German firm bought Reebok in 2006 to help it compete against Nike, but Reebok still struggles, particularly in North America where Adidas saw its sales fall by 14% in 2008.In January Adidas announced it would close its Reebok office in Bolton, ending a 116 year association with the town.Rival Nike has also been hit by falling consumer demand. In March it said it planned to halt production at three shoe factories in China and one in Vietnam.
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