German sportswear giant Adidas has raised its sales outlook for 2021, indicating its optimism for the year ahead despite various challenges. The company expects strong demand for its new products and is projecting sales to grow at a high-teens percentage rate, surpassing its previous forecast of a mid to high teens rate. In the second quarter, Adidas predicts a significant increase of around 50% in sales. This growth is largely attributed to the launch of new products and the excitement surrounding major sporting events such as the European soccer championship and the Copa America.

Although Adidas did not directly address recent controversies surrounding the sourcing of cotton from Xinjiang, China, the company acknowledged the geopolitical situation and the impact of ongoing lockdowns in Europe and industry-wide supply chain issues in its updated outlook. Despite these challenges, Adidas reported impressive sales results in Greater China during the first quarter, with sales surging by 156%. By the end of the quarter, a significant percentage of Adidas stores had reopened, indicating a promising recovery.

Puma, another prominent sportswear brand, expressed concerns about potential consumer backlash against Western brands in China and port congestion impacting its sales. However, Puma remains hopeful about its outlook for 2021, suggesting a cautious but positive stance.

Adidas exceeded expectations in the first quarter, with a 20% increase in sales, reaching €5.268 billion ($6.35 billion). Net income from continuing operations also experienced growth, amounting to €502 million. The company maintains its forecast for net income from continuing operations for the entire year, projecting it to be between €1.25 billion and €1.45 billion.

Adidas’ positive sales outlook demonstrates its resilience and adaptability amidst challenging market conditions. Despite the ongoing pandemic and disruption in supply chains, the company remains confident in the strong demand for its products. The eagerly anticipated sports events and the launch of new products are expected to be significant drivers of sales growth, contributing to the overall success of Adidas in 2021.

Useful links:
1. Adidas Supply Chain: Learn more about Adidas’ supply chain and its commitment to sustainability.
2. Adidas Financial Publications: Access financial reports and publications from Adidas to gain further insights into the company’s performance.