Adidas suffers a decline in its activity in China

(AOF) – Adidas, the German sports equipment manufacturer, has published its detailed accounts for the second quarter, showing a net profit down 24.2% to 309 million euros. Over the same period, sales, up 4% at constant exchange rates, amounted to 5.6 billion euros, driven by the increase in Western demand. However, the three-stripe brand saw a drop in sales in China of around 35% at constant exchange rates, due to restrictions linked to Covid-19.

Adidas has lowered its expectations in 2022, now aiming for an operating margin of 7% (compared to 9.4% previously) and a net operating profit of 1.3 billion euros, against between 1.8 and 1.9 previously.

“The macroeconomic environment, particularly in China, remains challenging. The recovery in this market is – due to the continued covid-19 restrictions – slower than expected. And we need to take into account a potential slowdown in consumer spending in all other markets for the remainder of the year,” a statement from the group said.

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