Adidas operating profit fell 28% in the second quarter

Adidas revenue in the second quarter grew by 5%, to € 10.9 billion. Such data the company introduced on Thursday. Adidas’s operating profit during this period fell by 28% to €392 million, net profit – by 7% to €360 million. Among the reasons for this decrease are lockdowns in China and Vietnam, ongoing supply chain difficulties, as well as the cessation of activities in Russia.

Adidas notes that due to the exit from the Russian market, revenue for the quarter fell by more than €100 million. “The macroeconomic environment, especially in China, remains challenging. The recovery in this market due to ongoing COVID-19 related restrictions is slower than expected,” added Adidas CEO Kasper Rorsted. At the same time, the company notes good results in Western markets – for example, revenue in North America grew by 37% in the second quarter.

Back in late July, the company slashed its full-year guidance for 2022 — due to a slow recovery in China, it now forecasts FX-adjusted full-year revenue to show mid-to-high single-digit percentage growth (i.e., roughly 4% to 9%) against the previously predicted 11-13%. Adidas shares rose 1.6% on Thursday.

Read more about the losses of Western retailers due to the withdrawal from Russia – in the material “Kommersant” “No clothes to return”.

Yana Rozhdestvenskaya