LAST UPDATE 10:49
Adidas AG announced today that it is confident of a return to revenue growth in China in 2022 despite further declining sales in this important market in the last quarter of 2022.
Total sales of the German sportswear company fell slightly in the fourth quarter to 5.14 billion euros, as double-digit growth in some markets was offset by a 24% drop in China.
Estimates spoke of 5.22 billion euros. The share increased by 6.6%.
This led to a drop in operating profit to € 66 million from € 225 million a year ago, with the operating margin falling to 1.3%.
Analysts had expected quarterly sales of 5.22 billion euros and operating profit of 118 million euros.
Total sales in 2021 amounted to 21.23 billion Euros, showing an increase of 16% on an annual basis.
Adidas expected an increase of up to 20%.
Explaining its performance, Adidas pointed to the demanding market environment in China, as well as supply shortages and pandemic-related disruptions.
Like its competitors Nike and Puma, Adidas has repeatedly announced a drop in sales in China, following a consumer boycott of Western fashion brands last March.
Nevertheless, Adidas appears confident that it will achieve sales growth in China, in medium single-digit percentages in 2022.
It aims for organic development in all regions, including China, where it “continues to make progress with its action plan to stabilize activities and revitalize growth”.
Source: Capital
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