adidas, the globally renowned sportswear biggie from Germany, has issued profit warning – not surprising considering the slow pace at which the retailer is recovering in China.
The retailer had previously expected revenues to be flat in the second half of the year; however, now it has warned of seeing double-digit slump in China sales for the remaining part of 2022.
The sportswear bigwig has lowered forecast net income from the Group’s continuing operations to clock € 1.3 billion in 2022.
Previously, the retailer forecast the same to be in the range of € 1.8 billion to € 1.9 billion.
The sales growth for the whole business is expected to be now below 10 per cent for the year. The previous forecast for the same was somewhere between 11 per cent and 13 per cent.
Also, the gross margin is expected to be somewhere around 49 per cent for the year, while the previous forecast was 50.7 per cent.
