Friday, 5 June 2020

Adidas says China sales back to growth faster than expected

German sportswear firm Adidas said on Thursday that sales had returned to growth in greater China faster than it had expected after the coronavirus lockdown, while the reopening of business in Europe and the Americas was going more gradually.

Adidas stuck by guidance it gave in April for a possible 40% fall in second-quarter sales and a drop in second-quarter operating profit of more than 100 million euros ($112.05 million) and said it would give more details with results due on Aug. 6.

While traffic to its stores in greater China stayed below that of last year in May, that was more than offset by a rise in how much shoppers were spending and a surge in e-commerce sales, leading to an overall increase in revenue for the month.

Adidas said it now expected second-quarter sales for the region to be around the same level as last year.

It said about three-quarters of its stores had reopened in Europe, although with most operating at reduced hours. About half in Russia are open again, but fewer than half its stores in the Americas are back in business.

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