- In Latin America, Adidas had a record sales increase.
- Deliveries in China fell 35% and this impacted the global numbers.
- The running division boosted sales for the UltraBoost 22 and adiStar models.
Adidas reduced sales and profits in the first three fiscal months of 2022.
That’s right, globally, it wasn’t a good quarter due to restrictions imposed in Chinaits main market by volume.
The sports fashion giant saw its global turnover fall by 3.1 percent without taking into account differences in the exchange rate and net profits registered a year-on-year decrease of 11.4 percent, below 500 million euros. euros, said the company in its report this Friday, May 6.
The cause of the meager result of Adidas is in China and Southeast Asia.
The restrictions on movement due to the latest wave of coronavirus hit sales and supply chains for supplies and finished products in those countries.
In the country led by Xi Jinping, the sale fell a whopping 35 percent between January and Marchwhich explains the negative result of the general numbers.
According to Adidas, the decline in sales was also caused by the blockades in Vietnam, a key country in the production of the sports brand. only there, Adidas estimates to have lost 400 million dollars.
Without considering the exchange rate, as we explained before, the German holding company reduced its turnover by 3.1 percent in the first quarter. If rates are considered, the company recorded a slight increase of close to 0.5 percent (US$ 5.3 billion).
The result, before taxes, fell 37.9 percent (438 million euros).
Adidas sales grow in Latin America
In the rest of the countries where Adidas has a presence, which are the vast majority of the countries in the world, Adidas saw its sales grow above double digits.
The brand says the increase was focused on multi-brand stores.
In addition, due to a “significant growth” in sales in its own stores, said Kasper Rorsted, CEO of Adidas.
In the United States and Canada, Adidas revenue advanced 13 percent, according to Reuters.
In Latin America, the rise in net sales was 38 percent. All the countries of the region are included there, from Mexico to Brazil, Chile and Argentina.
In the countries of the European Union, the Near East and Africa, the numbers of the brand of the three strips improved, but only 9.1 percent due to difficulties in deliveries due to the container crisis.
Sales through the company’s direct channels posted an increase of 1.1 percent between January and March compared to 2021, and 33.1 percent when compared to 2020.
Sales through digital channels increased by just 2.1 percent in the first quarter of 2022 due to the high comparison base of 2021.
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