Adidas sees green shoots in China after virus shock

FRANKFURT AM MAIN (AFP) – German sportswear maker Adidas said yesterday it returned to sales growth in China in May, after store closures due to the coronavirus pandemic.

China is “the company’s first major market on the road to recovery,” Adidas said in a statement, saying April-June sales should reach roughly the same level as in 2019 now its shops reopened.

While fewer people visited stores, the three-stripe brand said a bigger share of those who did come in were buying, while it had seen “exceptional” growth in online orders.

Almost all Adidas stores in the Asia-Pacific region and emerging market economies are open again but the figure is around three-quarters in Europe. “Significantly” fewer than half its shops are open in the Americas, where many countries including the United States and Brazil remain hotspots for the virus.

Despite the brighter picture in some parts of the world compared with a month ago, Adidas stuck to its late-April forecast that currency-adjusted sales will likely fall more than 40 per cent year-on-year in the second quarter.