adidas, the sportswear brand from Germany, has witnessed a 28 per cent fall in its second-quarter operating profit to clock € 396 million.
The second quarter of 2021 had seen the brand’s operating profit touch € 543 million.
The brand’s net income from continuing operations in the quarter slumped by 7 per cent to € 360 million. It was € 387 million in the same period a year earlier.
adidas has attributed the fall in profit to lockdowns in Vietnam and China, in addition to its move to halt operations in Russia.
Notably, the brand’s gross margin plummeted by 1.5 percentage points to 50.3 per cent owing to significantly higher supply chain costs.
Region-wise, North America saw a jump of 21 per cent in its Q2 revenue – all due to over 20 per cent growth in both direct-to-consumer and wholesale. While Latin America witnessed revenue increase of 37 per cent, Asia-Pacific too returned to growth.
The western markets showed strong momentum in the quarter for the brand, while China continued to be a challenge.
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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