German sportswear retailer, adidas, has warned of its sales getting impacted significantly in the coming days!
The retailer has said that factory closures in Vietnam – owing to fast rising COVID-19 cases – could cost it a sales loss of €500 million.
Inability to produce enough stock to meet growing demands is going to hit adidas in a big way, as the retailer gets substantial portion of its stock from Vietnam.
Loss of €500 million is 2 per cent of sales forecast made in 2021.
However, adidas has said that its sales in the first half of 2021 have touched pre-pandemic levels.
The retailer saw its six-month sales grow by 52 per cent to €5.8 billion and had last week raised its outlook for the full year.
Also Read: Sportswear stalwart adidas raises its outlook as Q2 revenue surges by 52%
Notably, adidas is not the first sportswear giant to be hit by factory closures in Vietnam. Last month American retailer Nike too had said that two of its major Vietnamese suppliers had stopped production in the country due to surge in coronavirus cases.
Meanwhile, Kasper Rorsted, CEO, adidas, reportedly, said that it has plans to move its operations to other countries, but the ongoing interruptions will have a negative impact on its business in the second half.
The German retailer was founded in 1924 and is known for apparels, shoes and fashion accessories. It generated €21.915 billion in 2018.
