Adidas’ operating profit fell 28 per cent in the second quarter.

The German-based apparel brand has trimmed its yearly profit outlook for the second time in three months, citing a deterioration of traffic trends in Greater China as well as a significant inventory build-up linked to lower consumer demand in Western markets as of September.Adidas, the world’s second-largest sports apparel manufacturer after Nike, is battling a unique series of challenges.

The company’s shares are down 65 per cent since January.Against a challenging macroeconomic market backdrop, the company is diligently focusing on all factors it can to maintain its growth momentum in western markets and to accelerate growth in Asia-Pacific. Now, for the third quarter, Adidas is reporting a preliminary four per cent rise in revenue. However, net income for the quarter is expected to drop 63 per cent from the same period a year ago.Adidas is finding itself saddled with excess inventory stemming from last year’s supply chain snags and foresees higher promotional activity during the remainder of the year to free up space for new merchandise. It is currently offering up to 65 per cent off on thousands of shoe and clothing styles.

The athletic footwear market as a whole is in a tough spot from shifting consumer preferences, softening demand and higher costs.