Coronavirus: Adidas forecasts 40 per cent drop in sales in second quarter
Sportswear giant Adidas expects sales to plummet 40 per cent in the second quarter due to the impact of coronavirus lockdowns around the world.
The German brand reported a 19 per cent decline in sales in the first quarter, but this morning said it forecast lower sales over the second quarter of the year.
Coronavirus lockdowns across the world mean 70 per cent of Adidas’ stores are currently closed. The company is unable to provide an outlook for the year due to the uncertainties around how long its stores will remain closed.
A 35 per cent increase in online sales only partially offset the reduction in sales, which dropped to €4.75bn in the first quarter.
Operating profit was down 93 per cent to €65m.
“Our results for the first quarter speak to the serious challenges that the global outbreak of the coronavirus poses even for healthy companies,” said Adidas chief executive Kasper Rorsted.
“I am proud of how our adidas family has been working together to support both our company and our communities.
“At the moment, we are focused on managing the current challenges and doubling down on the recovery in China and the opportunities we see in e-com.
“While we prepare for the return to a more normalised state of the business, we also remain realistic: Over 70 per cent of our stores worldwide are currently closed.”