Berlin — German sportswear firm Adidas said on Thursday that sales had returned to growth in greater China faster than it had expected after the coronavirus lockdown, while the reopening of business in Europe and the Americas is going more gradually.
Adidas stuck by guidance it gave in April for at least a 40% fall in second-quarter sales and a drop in operating profit of more than €100m and said it would give more details with results due on August 6. Jefferies analyst James Grzinic said the news that China is rebounding ahead of the company’s expectations means the group’s second-quarter sales decline would be close to the 40% mark, rather than a bigger drop he had previously expected.While traffic to its stores in greater China stayed below that of last year in May, Adidas said that was more than offset by a rise in how much shoppers were spending and a surge in e-commerce sales, leading to an overall increase in revenue.
Before the coronavirus pandemic, greater China had been the company’s most profitable region and the fastest growing, expanding sales 15% in 2019. It said about three-quarters of its stores had reopened in Europe, though with most operating at reduced hours. About half in Russia are open again, but fewer than half its stores in the Americas are back in business.