Adidas Defies Turbulence with Strong Quarterly Growth, North America Lags Behind

The German sportswear manufacturer Adidas has reported a solid revenue growth of four percent to just under 5.5 billion euros in its latest quarterly report, even though the figures were affected by known negative currency effects. Adjusted for these effects, revenues increased by even eight percent. However, a closer look at individual markets reveals a mixed picture: while there was a decline of four percent in North America, noticeable increases were recorded in China and Europe. The company, headquartered in Herzogenaurach, had to concede ground particularly in the North American market, where wholesale experienced double-digit declines. Inventory levels, which posed a problem in the past, have continued to normalize. Compared with the previous year, Adidas was able to reduce inventories by 22 percent or an impressive 1.2 billion euros to 4.4 billion euros. Performance in China was in stark contrast to North America, with an increase in revenues of eight percent based on constant exchange rates. Even more impressive were the numbers from Latin America and Europe, where Adidas saw increases of 18 percent and 14 percent respectively, setting significant growth momentum. On the earnings side, the group was able to announce a remarkable recovery: instead of a loss of 39 million euros in the comparative period of the previous year, Adidas achieved a profit of 170 million euros. The company had already hinted at this positive development when it published preliminary data in mid-April and at the same time adjusted its annual forecast upwards. Overall, the report of the sportswear giant reflects solid financial health, with challenges in specific markets, but also with impressive growth figures that underline the potential for further global expansion.