Adidas reports a 93% plunge in profits

Adidas reported a 93% plunge in first-quarter profit and sales off 19%, missing forecasts, and warned of a deeper hit to second-quarter revenue as lockdowns forced the German sportswear maker and other retailers to close stores.

First-quarter operating profit fell to 65 million euros, well short of the 263 million expected by analysts.

Adidas said it had taken a hit of around 250 million euros on unsold stock in greater China, purchase order cancellations and higher bad debt provisions.

Sales fell 19% to 4.75 billion euros versus 4.85 billion forecast by analysts, Refinitiv Eikon data showed, and the company warned of a possible 40% fall in the seond quarter.

It said it could not provide an outlook for the year given the uncertainty over when closed stores might reopen.

Adidas said more than 70% of its stores were currently closed worldwide, with a 35% rise in e-commerce in the first quarter only partially offsetting that.

Read more via Reuters