The corona lockdown in China is causing problems for Adidas. Profit from continuing operations fell almost 40 percent to 310 million euros.
Because of the corona lockdowns in China, the sporting goods manufacturer Adidas has lowered its forecast.
The company, which is listed on the Dax, announced that profit from continuing operations should now only be in the lower range of the targeted range of 1.8 to 1.9 billion euros.
The operating margin is expected to be around the previous year’s level of 9.4 percent. Adidas had previously promised 10.5 to 11 percent. In terms of sales, however, the Management Board is sticking to its expectation of currency-adjusted growth of 11 to 13 percent.
In the first quarter, the company had earned slightly more than expected by analysts. Sales from January to March rose slightly to EUR 5.3 billion. Adjusted for currency effects, revenue fell by three percent. Adidas benefited from gains in North America, Latin America and Europe. Because the board had to put significantly more money into advertising, the operating result fell by 38 percent to 437 million euros. Profit from continuing operations fell almost 40 percent to 310 million euros.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
