Adidas has won $305 million award from a federal jury for trademark violation of its three-stripe design by a Kansas shoe company.
Topeka-based Collective Brands Inc., which operates Payless and Stride Rite shoe store chains, called the award "excessive and unjustified" on Tuesday.
Its shares tumbled 15 percent, or $1.85, to $10.46.
A spokeswoman for Germany's Adidas AG, the world's second-largest sporting goods maker, said the company was happy with the verdict.
"The three-stripes are paramount to the Adidas brand, and a very strong and popular brand symbol globally," spokeswoman Anne Putz wrote in an e-mail. "It is very satisfying for the three stripes to be recognized as a strong trademark after the court heard detailed evidence over more than three weeks."
Adidas on Tuesday reported its first-quarter profit jumped 32 percent, to $261.27 million.
Collective Brands said it plans to ask the court to set the verdict aside. If that request is not granted, the company said in a statement, Collective "intends to take all necessary steps to overturn it."