Adidas UK has made a significant comeback in 2021 following a challenging year in 2020 due to the impact of the COVID-19 pandemic. The company’s sales saw a remarkable increase of 23.6%, reaching £1.291 billion, which exceeded the 5.3% decrease experienced in the previous year. This surge in sales came from various channels, with wholesale seeing a rise of £207.7 million, its own retail stores contributing £13.89 million, and its e-commerce channel showing an increase of £24.7 million. These figures indicate a return to normalcy in terms of trading levels after the disruptions faced in 2020.

Despite the overall improved performance, there was a slight decline in the gross profit margin, which decreased from 23% in 2020 to 21.5% in 2021. However, the operating profit margin witnessed a growth, increasing to 3.2% from 2.6%. The operating profit itself also saw a significant rise, reaching £41.9 million compared to £26.8 million in the previous year. Furthermore, the post-tax profit also displayed a positive trend, with a value of £32.28 million, up from £20.42 million.

The company encountered substantial challenges during 2020, which continued into the first quarter of 2021. However, there was a notable recovery in consumer confidence and sustained demand for sport-inspired apparel and footwear throughout the remainder of the year, leading to steady sales growth. Despite facing production issues in the second half and the fourth quarter, the company managed to achieve its highest turnover ever in 2021.

Looking ahead, Adidas remains optimistic about its growth trajectory in 2022, acknowledging the potential challenges it may encounter. The company recognizes the need to adapt to changing circumstances while maintaining its focus on the UK market. In fact, Adidas is actively expanding its presence by opening new stores, including a large store in the upcoming Battersea Power Station development.

In conclusion, Adidas UK’s financial results for 2021 clearly demonstrate a strong recovery from the challenges faced in the previous year. The substantial increase in sales, particularly in wholesale and e-commerce channels, signifies a return to normal trading levels. Although there was a decline in the gross profit margin, the improved operating profit and post-tax profit reflect the company’s resilience and ability to adapt. Adidas’s commitment to the UK market is evident through its continuous expansion efforts with the opening of new stores.

Useful links:
1. Adidas UK Official Website
2. Battersea Power Station Development