Adidas is cautious about the future given the new wave of COVID-19 infections
The sportswear company Adidas posted Q3 2020 figures, which showed the pandemic's effects on the business.
In Q3, Adidas reported a 3% fall in sales to €5.96 billion. Analysts were expecting the decrease to reach €5.91 billion. Its operating profit dropped 12% to €794 million. The decline was ahead of the €723 million forecasted.
Despite the 4% increase in sales reported in Europe, those in the USA fell 1%. In China, the drop was even bigger - 5%. On the other hand, e-commerce sales surged 51%.
According to Adidas, the decreases are due to the new wave of COVID-19, which forced the company to close stores.
For the future, the company expects the sales to decline as much as they did in Q3, despite the return to growth projected in China and the strong demand for products designed by Beyoncé. The operating profit is seen below the consensus at €100 million with a high of €200 million.
Following the report, Adidas' stock price fell more than 5%.
Sources: reuters.com, finance.yahoo.com
This information is prepared for general circulation. It does not have regard to the specific investment objectives, financial situation or the particular needs of any recipient.
You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.
This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent.
Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of sc.capex.com