FRANKFURT (AFP) – German sportswear brand Adidas yesterday bumped up its earnings outlook for the year, as it expects the Olympics and the upcoming European and American football seasons to boost its sales.
The Bavaria-based group recorded a net profit of EUR397 million between April and June, as pandemic restrictions eased and the football European Championships got going.
Its bottom-line was decisively up on the same period last year, when temporary shop closures in much of the world because of the Covid-19 pandemic left the group with a EUR295 million loss.
Adidas now expects sales for the year to increase by 20 per cent across the board, and for net profit to touch between EUR1.4-1.5 billion.
The optimistic prediction was made despite “Covid-19-related lockdowns, industry-wide supply chain challenges and the geo-political situation”, Adidas said in a statement.
“Driven by the strength of our brand and better-than-expected demand for our products, we saw an acceleration in our top – and bottomline,” Adidas Chief Executive Officer Kasper Rorsted said in a press release.
“This momentum gives us all the confidence to increase our full-year outlook despite the external challenges that our industry continues to face.”
The group saw improved sales in all regions except China, which dipped by 16 per cent compared with the same three-month period, although the company said the drop reflected a strong recovery in the second quarter last year.