Adidas posts Q1 FY20 sales of €4,753 million

27 Apr '20

2 min read

Pic: Adidas

Adidas, a designer and manufacturer of shoes, clothing and accessories, posted 19 per cent decrease in its net sales to €4,753 million in first quarter (Q1) FY20 ended on March 31, 2020 compared to sales of €5,883 in same period prior year. Gross profit were €2,345 million (Q1 FY19: €3,151 million). Operating profit were €65 million (Q1 FY19: €875 million).

“Our results for the first quarter speak to the serious challenges that the global outbreak of the coronavirus poses even for healthy companies,” Kasper Rorsted, adidas CEO, said in a press release. “At the moment, we are focused on managing the current challenges and doubling down on the recovery in China and the opportunities we see in e-com. While we prepare for the return to a more normalised state of the business, we also remain realistic: Over 70 per cent of our stores worldwide are currently closed.”

The company’s net income from continuing operations decreased 97 per cent to €20 million (Q1 FY19: €631 million).

Sales in Europe declined 8 per cent to €1,426 million. Sales in North America grew 3.8 per cent to €1,201 million. Sales in Asia-Pacific fell 44.7 per cent to €1,184 million.

Adidas brand sales fell 20.1 per cent to €4,269 million (Q1 FY19: €5,343 million). Reebok brand reported decline of 11.4 per cent to €372 million (Q1 FY19: €420 million).

The company reported that its top line continued to sequentially recover in Greater China in the first three weeks of April, and global e-commerce revenues showed another significant acceleration from 55 per cent currency-neutral growth recorded in March.

“Despite the current situation, I am confident about the attractive long-term prospects this industry provides for adidas,” Rorsted said. “Our focus on accelerating our own-retail and digital business will serve us even better in the future. We are well positioned as a global company with strong brands.”

Fibre2Fashion News Desk (JL)

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