Skip to main content

Business | Company Earnings: Adidas projects a 40% decline in sales for the second quarter

Elliot Smith




GP: Daily life in Beijing, China, amid coronavirus outbreak 200219 EU
People in face masks walk in a street during an outbreak of the 2019-nCoV coronavirus.
Artyom Ivanov | TASS via Getty Images

Adidas has predicted that sales will fall by 40% in the second quarter, as the impact of the coronavirus takes hold.
The German sportswear giant on Monday reported a 19% decline in net sales for the first quarter from the year before to 4.75 billion euros ($5.16 billion), as 70% of its stores worldwide closed as a result of the Covid-19 pandemic.
Its first-quarter net income was 26 million euros, down 96% from the same period last year, and Adidas said that owing to uncertainty over the duration of store closures, it would be unable to offer a full-year outlook at present.
E-commerce — which it described as “the only channel that has remained fully operational in most parts of the world” — rose 35%, but failed to offset the loss from pandemic-induced lockdowns around the world.
Looking ahead to the second quarter, the company said it expects “both top- and bottom-line declines in the second quarter of 2020 are currently expected to be more pronounced than those recorded in the first quarter.” It forecast sales to come in more than 40% below last year’s.
CEO Kasper Rorsted told CNBC that despite the current situation, the sporting goods industry would emerge favorably over the medium-term due to increased focus on health and fitness around the world.
“The personal exercise, as soon as people are allowed to go outside, I think that will grow very quickly because having spent six, eight, 10 weeks inside, I think that desire to go out and move is going to be quite outspoken,” he said.
Rorsted also suggested looking to the business’s recent performance in China for an idea of what emerging from the crisis may eventually look like elsewhere in the world.
“What we have seen in China in March is growth in our own retail stores, a very strong growth in our e-commerce — we grew 35% for the quarter, we grew 55% globally for e-commerce in the month of March, and we grew even quicker in China — and we are seeing that trend in China continuing in the month of April,” he told CNBC’s “Squawk Box Europe.”

Comments

Popular posts from this blog

Analysis | The Cybersecurity 202: How the shutdown could make it harder for the government to retain cybersecurity talent

By Joseph Marks 13-17 minutes THE KEY President Trump delivers an address about border security amid a partial government shutdown on Jan. 8. (Carolyn Kaster/AP) The partial government shutdown that's now in its 18th day is putting key cyber policy priorities on hold and leaving vital operations to a bare bones staff. But the far greater long-term danger may be the blow to government cyber defenders' morale, former officials warn. With the prospect of better pay and greater job security in the private sector, more government cyber operators are likely to decamp to industry, those former officials tell me, and the smartest cybersecurity graduates will look to industry rather than government to hone their skills. That’s especially dangerous, they say, considering the government’s struggle to recruit and retain skilled workers amid a nationwide shortage of cybersecurity talent. About 20 percent of staffers are furloughed at the De

Democrats call for investigation into Trump’s iPhone use after a report that China is listening:Analysis | The Daily 202 I The Washington Post.

washingtonpost.com By James Hohmann _________________________________________________________________________________ President Trump and Chinese President Xi Jinping visit the Great Hall of the People in Beijing last November. (Andrew Harnik/AP) With Breanne Deppisch and Joanie Greve THE BIG IDEA: If Democrats win the House in two weeks, it’s a safe bet that one of the oversight hearings they schedule for early next year would focus on President Trump’s use of unsecured cellphones. The matter would not likely be pursued with anywhere near the gusto that congressional Republicans investigated Hillary Clinton’s use of a private email server during her time as secretary of state. Leaders of the minority party have higher priorities . But Democratic lawmakers made clear Thursday morning that they will not ignore a New York Times report that Trump has refused to stop using iPhones in the White House, despite repeated warnings from U.S. intelligence offici

RTTNews: Morning Market Briefing.-Weekly Jobless Claims Edge Down To 444,000. May 13th 2010

Morning Market Briefing Thu May 13 09:01 2010   Commentary May 13, 2010 Stocks Poised For Lackluster Open Amid Mixed Market Sentiment - U.S. Commentary Stocks are on pace for a mixed start to Thursday's session, as a mostly upbeat jobs report continued to relieve the markets while some consternation regarding the European debt crisis remained on traders' minds. The major index futures are little changed, with the Dow futures down by 4 points. Full Article Economic News May 13, 2010 Weekly Jobless Claims Edge Down To 444,000 First-time claims for unemployment benefits showed another modest decrease in the week ended May 8th, according to a report released by the Labor Department on Thursday, although the number of claims exceeded estimates due to an upward revision to the previous week's data. Full Article May 13, 2010 Malaysia's Decade High Growth Triggers Policy Tightening Malaysia's economy grew at the fastest pace in a decade in