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Adidas raises outlook despite hitting sales in China


Reuters API


August 5, 2021

German sportswear company Adidas Demand surged in most parts of the world, raising the outlook for full-year sales and profitability, but was hit in late March in China, where Western brands faced a boycott of their products.


Adidas has a new version of the popular NMD sneakers, Olympic And the beginning of the club soccer season in Europe.

Second-quarter sales increased 52% to € 5.77 billion ($ 6.01 billion), while operating profit was € 543 million, an average analyst forecast of € 4.97 billion and 400 million. Each exceeded 58 million euros.

Adidas now has up to 20% increase in 2021 sales compared to previous forecasts of “high teenage percentage” and net profit from continuing operations from € 1.4 billion to € 1.5 billion. Expected to reach the euro. 1.45 billion.

Currency-neutral sales nearly doubled in North America and Europe, the Middle East and North Africa in the quarter, but fell 16% in Greater China. This is partly because the area recovered from the coronavirus blockade a year ago.

Western brands, including Adidas, faced an online attack in China in late March over past statements that they would not procure cotton from the Xinjiang Uighur Autonomous Region following reports of human rights abuses against Uighur Muslims. Beijing has denied such abuse.

Adidas said in May that demand initially plummeted in China, but then slowly but steadily recovered. He did not comment on Thursday’s tensions other than mentioning the “geopolitical situation.”

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Adidas raises outlook despite hitting sales in China

Source link Adidas raises outlook despite hitting sales in China

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