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adidas has just reported its Q1 2020 results, and surprisingly the German sportswear giant shared that it missed its profit expectations by 93% and had a 19% fall in sales due to the current COVID-19 pandemic.
According to Reuters, adidas was expected to hit €263 million ($285.3 million), however it only pulled in €65 million ($70 million). “Our results for the 1st quarter speak to the serious challenges that the global outbreak of the coronavirus poses even for healthy companies,” chief executive Kasper Rorsted said in a statement. Additionally, adidas saw a decrease of 19% in sales, equating to $5.15 billion, which fell short of the $5.26 billion estimate.
Like many companies around the world, adidas was forced to shut down factories and stores to help flatten the curve. adidas shared that 60% of its businesses are currently at a standstill, with more than 70% of its stores closed worldwide.
For Q2, adidas expects another fall of 40% in its sales. “Both top- and bottom-line declines in the 2nd quarter of 2020 are currently expected to be more pronounced than those recorded in the 1st quarter,” adidas said, forecasting a slump in currency-adjusted sales of “more than 40%” and an operating loss.
On the other hand, the pandemic has geared more attention towards fitness and health. adidas has seen record sales of yoga mats and Adilettes in recent weeks, while its e-commerce sales have risen by 35%.
Make sure to keep on top of all the current COVID-19 news here.
