German sportswear giant adidas has seen its Q3 sales go up by a currency-neutral 3 per cent to clock €5.75 billion. That’s short of €5.83 billion predicted by analysts.
Notably, the retailer saw its operating profit fall by 8.5 per cent to €672 million, which is again much behind the €682 million forecast by analysts.
The retailer has attributed the slump in sales and operating profit to sourcing disruptions and difficult market scenario in China.
More on this Kasper Rorsted, CEO, adidas, said that there is a divergence between the market environment in Asia and that in Europe and the US, where sales continued to grow. While Asia reported double-digit losses, Europe and the US saw double-digit growth, the CEO added.
The German retailer believes unless restrictions are relaxed in a big way, Asia will not witness a full recovery.
15 per cent fall in sales in Greater China due to pandemic-induced restrictions amidst political situations hit the revenue growth of the retailer in Q3.
The retailer now expects to reach the lower end of previous forecasts for a 2021 operating margin between 9.5 per cent and 10 per cent and net income from continuing operations of €1.4 billion to €1.5 billion.
adidas was founded in 1924 and is known for apparel, shoes and fashion accessories. It generated €21.915 billion in 2018.
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