German shoemaker adidas has reported its net profit for the first quarter of 2020 fall by 97 per cent due to the ongoing global pandemic.
The net profit for the year was reported to be US $ 21.5 million compared to US $ 681.3 million a year ago, with more than 70 per cent of its offline stores currently shut.
The brand has, however, seen a 55 per cent increase in online sales in March and a 35 per cent rise for the first quarter overall, even as the rise in online sales failed to prevent the brand’s revenue fall by 19 per cent to €4.75 billion.
Kasper Rorsted, CEO, adidas, said “Our results for the first quarter speak to the serious challenges that the global outbreak of the coronavirus poses even for healthy companies. I am confident about adidas’ long-term prospects despite the ongoing shutdown of a significant part of its business. Consumers are developing an increased appreciation of well-being. They want to stay fit and healthy through sports.”
Revenue and profit is predicted to be significantly worse in the second quarter. adidas, meanwhile, opted not to give full-year guidance due to the uncertainty created by the pandemic.
