Frankfurt, May 6, (dpa/GNA) - Sporting goods giant Adidas lowered its forecast for the year due to challenges in China, where the battle against Covid-19 outbreaks is being met with strict lockdowns.
Profit from continuing operations in the fiscal year was now expected at the lower end of the previously communicated range of between €1.8 billion and €1.9 billion ($1.89 billion to $1.99 billion).
The operating margin is expected to be around the previous year’s level of 9.4%. Previously, Adidas had held out the prospect of 10.5% to 11%.
In terms of sales, however, the German company is sticking to its expectation of currency-adjusted growth of 11% to 13%.
In the first quarter, the company earned slightly more than analysts had expected. Compared to the same period last year, sales for the months January to March rose 0.6% to €5.3 billion. But adjusted for currency effects, however, sales fell by 3%.
Adidas benefited from growth in North and Latin America as well as in Europe, the company said in announcing its quarterly results on Friday.
“The company continued to face a challenging market environment in Greater China, amplified by Covid-19-related lockdown,” a statement said.
“As a result, revenues in Greater China decreased 35%, also due to strong prior year comparables, and 16% in Asia-Pacific.”
GNA
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