Adidas Q2 operating profit down 28%

Source: Mintel 05-08-2022

Adidas has reported a fall of 28% to €326 million in operating profit for its second quarter as net income dropped to €360 million from €387 million in the same period the year before. Adidas attributed the drop in performance to business suspension in Russia combined with supply chain issues and lockdowns in China and Vietnam. The retailer’s EMEA and North American businesses drove revenue growth in the period.

Adidas chief executive Kasper Rorsted said: “With sports back at centre stage this summer, revenues in our strategic growth categories Football, Running and Outdoor all increased by double digits. However, the macroeconomic environment, particularly in China, remains challenging. The recovery in this market is – due to continued COVID-19-related restrictions – slower than expected. And we have to take into account a potential slowdown in consumer spending in all other markets for the remainder of the year.”