Adidas Hikes NA Revenue Outlook, Despite Dimmer Global View
The Three Stripes, citing strong current momentum, raised its annual revenue outlook for North America last week at the same time it warned of a possible global deceleration in consumer spending in H2 due to challenging macroeconomic conditions. Adidas currently sees its FY22 North American currency-neutral revenues rising in the high teens.
In the second quarter, the group’s footwear rose 14 percent on a reported basis to the equivalent of $3.45 billion with football, running and outdoor each rising by double digits. Apparel sales declined 1 percent on a reported basis to the equivalent of $2,097 million. Accessories and gear sales came in 33 percent higher at $424.7 million. In North America, Q2 revenues rose 37 percent on a reported basis to the equivalent of $1,816 million as the regional operating profit increased 31 percent on a currency-neutral basis to $384.2 million.
As of last week, Adidas said it had not experienced any slowdown in sellthroughs or significant wholesale order cancellations at it reported a 10.2 percent increase in Q2 revenues to the equivalent of $5,956 million despite persistent supply and demand challenges and more than $319 million in lost revenues due to factory shutdowns in Vietnam last summer and its market withdrawal from Russia/CIS. The company’s Q2 operating profit declined 28 percent to approximately $417 million and income from continuing operations was off 7.0 percent to $383 million, propped up by a one-time tax benefit of approximately $106.4 million.