Adidas, the renowned German sportswear giant, recently announced that its sales in greater China have rebounded more quickly than expected following the COVID-19 lockdown. However, the company also highlighted that the reopening of business in Europe and the Americas has been progressing at a slower pace.
Despite the positive growth observed in China, Adidas is maintaining its previous guidance given in April, which stated a potential 40% drop in second-quarter sales. Additionally, it predicts a decrease in second-quarter operating profit of over €100 million. More detailed information regarding these projections will be provided when the company releases its results on August 6.
Although foot traffic in Adidas’ stores in greater China remained lower than last year’s levels in May, this has been compensated by an increase in customer spending and a surge in online sales. This overall boost in revenue has led the company to expect that second-quarter sales for the region will be similar to those of the previous year.
Adidas revealed that around 75% of its stores in Europe have reopened, but many are currently operating with reduced hours. In Russia, over half of the stores have resumed business, whereas less than half of the Americas stores have done so. This difference in progress reflects the varying impacts of the pandemic across different regions.
The ability of the sportswear giant to rebound in the Chinese market provides a promising sign for both the company and the overall industry. As economies slowly recover from the effects of the pandemic, it is crucial for brands to adapt their strategies and meet the changing needs and preferences of consumers. Given the ongoing uncertainties surrounding the global economy, companies like Adidas will continue to closely monitor sales and adjust their expectations accordingly.