With the exception of one region of the world, Adidas’ figures in the first quarter are correct. The bottom line is a clear profit.
The sporting goods group Adidas achieved robust growth at the start of the year – with the exception of the important North American market. Here, revenue in the first quarter fell by four percent after adjusting for currency effects, the company announced when it presented its final figures in Herzogenaurauch. Wholesale trade recorded double-digit declines in the region. Wholesale trade in North America had recently suffered from continued high inventories.
In contrast, sales in China rose by eight percent after adjusting for currency effects. One of the biggest growth drivers was Latin America, with an increase of 18 percent. But Europe also achieved double-digit growth, namely by 14 percent. Group sales rose by four percent to almost 5.5 billion euros, with negative currency effects weighing on this. Adjusted for currency effects, growth was eight percent.
The bottom line was a profit of 170 million euros, after a loss of 39 million euros. Adidas had already presented preliminary figures for the quarter in mid-April and increased its annual forecast. Overall, inventory levels continued to normalize, with inventories falling by 22 percent or 1.2 billion euros to 4.4 billion euros.
Source: Stern
