Amid brightening conditions in some markets, Adidas said 2021 revenues should advance as much as 20 percent on the back of key product releases, including by the re-introduction of its NMD franchise.
Revenues in the second quarter advanced 55 percent in currency-neutral terms to 5.08 billion euros, driven by all geographies except Greater China.
Adidas said sales leaped 87 percent in North America and 99 percent in EMEA, which reflects “strong double-digit growth versus the 2019 level.”
Revenues in Latin America more than tripled, up 230 percent, while Asia-Pacific grew 66 percent. Adidas cited “extended lockdowns” in the Asia-Pacific region for the relatively modest gains.
“In Greater China, the company recorded a steady business recovery as well as sequential sell-out improvements throughout the quarter. Nevertheless, revenues in Greater China declined 16 percent during the three-months-period,” the company noted.
The company also swung to profit, reporting net income from continuing operations of 387 million euros, versus a loss of 243 million euros in the year-ago quarter.
As reported Adidas plans to divest the Reebok brand, so all income and expenses of the Reebok business are reported as discontinued operations as of Q1.
“With sports taking back center stage this summer, we delivered a very successful quarter,” Adidas chief executive officer Kasper Rørsted said in a release. “Revenues in our key categories of football and outdoor even grew at triple-digit rates. The share of full-price sales increased strongly, fueling exceptional profitability improvements. This momentum gives us all the confidence to increase our full-year outlook despite the external challenges that our industry continues to face.”
Adidas said it would “significantly” expand its Futurecraft 4D portfolio with the introduction of the 4D FWD Pulse; scale its ZX franchise with the introduction of the ZX 5K Boost; and quadruple the size of its Forum franchise via “several iterations as well as dedicated marketing activities.
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