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Adidas second-quarter sales decline in China as consumers boycott international brands

London- Adidas This year’s outlook expanded despite lower sales in China, where some consumers boycotted sportswear brands because of their suspicion of human rights abuses.

Adidas said in its second-quarter earnings report Thursday that revenues increased in all regions except Greater China, especially in Europe and the United States, with second-quarter sales up 55% year-on-year.

“North America, Latin America and Europe are experiencing very strong growth and there is uncertainty in China, but I am confident that China will be very successful this year as well,” said Kasper Rørsted. Adidas CEO told CNBC’s Squawk Box Europe.

German sportswear giants posted net profit of € 397 million ($ 470 million) in the second quarter. This is in contrast to last year’s net loss of € 295 million, coronavirus Pandemic.

Online revenue fell 14% in the second quarter as more consumers were able to visit the store. Adidas saw a surge in online sales during the same period of 2020, when many markets were blocked.

Rorsted said online sales have “normalized” to some extent from the extraordinary levels seen last year, but still look forward to “strong growth” in e-commerce in the future.

Adidas said it expects up to 20% year-over-year sales growth in 2021, supported by future product releases and the fact that more people will be able to participate in live sports. I raised the outlook.

Chinese boycott

The company’s sales in China are closely monitored by analysts and investors.

Adidas said Thursday that second-quarter sales fell by more than 16% in Greater China.

Pedestrians walk by the large adidas logo in a German multinational sportswear shop.

Miguel Candela | SOPA Images | Light Rocket via Getty Images

“Geopolitical tensions have impacted our online business, especially in the second quarter of China, but we believe it will normalize over time,” said Rorsted.

It will come later Some mainland Chinese consumers have started boycotting An international brand that opposes the treatment of Chinese minorities in the Xinjiang Uygur Autonomous Region, where many cotton plantations are found.

Uighurs, who live primarily in western China, have been identified by the United Nations. America, England Other as a repressed group.

Earlier this year, Canada, the United Kingdom, and the United States Joint statement He expressed “deep and ongoing concern” about forced labor, mass detention in camps, and other serious abuses of Uighurs in Xinjiang Uygur Autonomous Region. NS European Union imposed sanctions in March Chinese officials say they are responsible for the abuse of Uighurs.

China’s Ministry of Foreign Affairs Characterize claims such as “malicious lies” It was designed to “defile China” and “frustrate China’s development.”

Adidas previously said,Zero tolerance An approach to slavery and human trafficking. “

Adidas second-quarter sales decline in China as consumers boycott international brands

Source link Adidas second-quarter sales decline in China as consumers boycott international brands

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