Adidas on Monday reported a decrease in profit by 93% in first-quarter profit. Sales also showed a decrease by 19%, missing the forecasts of analysts, and warned of a deeper hit to second-quarter revenue as lockdowns forced the German sportswear maker and other retailers to close stores.
First-quarter operating profit fell to 65 million euros, well short of the 263 million expected by analysts. Adidas said more than 70% of its stores were currently closed worldwide, with a 35% rise in e-commerce in the first quarter only partially offsetting that.
Analysts of Refinitiv Eikon expect possible 40% fall in the second quarter
Positive signs come from China according to the fact, that in the first three weeks of April, sales in China had continued to recover as stores reopened there.
Adidas reported data of the company’s cash position was 1.975 billion euros at the end of March. Company received approval from Germany’s government to receive 2.4-billion-euro government-backed loan on April 14 to help it through the crisis and is reportedly planning a bond to replace it.
Adidas shares were down 1.2% in early trade and have fallen more than a third since the coronavirus pandemic started.
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