Sports Brand Adidas Expects to Record A Loss in the Second Quarter
Sports brand Adidas expects to record a loss in the second quarter. The German company’s sales have slumped as a result of the corona crisis as more than two-thirds of Adidas stores remain closed.
The company is, therefore, counting on a 40 percent drop in turnover.
In the first quarter, there was also a drop in turnover, by 19 percent year-on-year. Adidas sold for less than 4.8 billion euros in sports equipment.
In the region of “Greater China”, 800 million euros less was converted than usual, partly because Adidas took back more goods from stores to keep stocks limited.
Profit fell by no less than 97 percent in the first quarter. That amounted to 20 million euros, which was just writing black numbers.
Last year, Adidas made a profit of 631 million euros in the first three months of the year.
Adidas cannot give an expectation for the whole year. The developments surrounding the coronavirus are still too uncertain for that.