Adidas Books 2Q Sales Hit From China, Russia, Supply Issues; Sees Likely Consumer Slowdown
04 Agosto 2022 - 3:13AM
Dow Jones News
By Joshua Kirby
Adidas AG said Thursday that second-quarter sales were dragged
by supply squeezes and a loss of revenue in Russia, as well as by
lockdowns in China, as it confirmed preliminary results and new
lower full-year guidance.
The German sporting-goods giant's quarterly sales rose 4% at
constant currency to 5.6 billion euros ($5.69 billion,) driven by
Europe and the Americas, while revenue in Greater China declined by
35% amid strict lockdowns that strangled demand in the key market.
However, the Asia-Pacific region as a whole returned to growth with
a 14% increase, Adidas said.
The group said its top line was also weighed by a EUR200 million
supply squeeze stemming from last year's lockdowns in Vietnam, a
major sourcing country. In Europe, performance was dragged to the
tune of EUR100 million by loss of revenue after closing stores in
Russia, the company said.
Setting out preliminary results last week, Adidas slashed its
guidance for the full year for the second time in three months,
forecasting lower revenue growth and earnings as sales in China
struggle to recover.
The new guidance--which includes faster growth in North and
Latin America--accounts for potential demand slowdown in markets
other than China too, given a more conservative view of consumer
spending in the coming months, Adidas said.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
August 04, 2022 01:58 ET (05:58 GMT)
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