LAST UPDATE 09:49
It downgraded Adidas’s 2022 revenue and net profit estimates as new restrictions in China continued to hit the German sportswear company.
The company now expects sales to reach the lowest range of estimates for an increase of 11% -13%, while net profits from continuing operations are expected between 1.8-1.9 billion euros.
Adidas announced a less optimistic outlook for the outlook in China this year, predicting a recent drop in sales in key markets as the pandemic cuts demand.
The decline in China’s sales means that the German sportswear group now expects zero growth in its margins.
Nevertheless, it supported its estimates for sales for the year, at 11% -13%, but clarified that they will be formed at the bottom of the market.
The company expects to return to positive growth in the second quarter, at around 20%, as supply pressures subside and demand recovers in the Asia-Pacific region.
Source: Capital
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