adidas grows double-digit in Western markets in Q1
06 May 2022, Mumbai:
“In the first quarter, consumer demand for our brand and products was strong in all Western markets. Our combined sales in North America, EMEA and Latin America grew at a double-digit rate.
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Backed by an exceptionally strong wholesale order book and relentless focus on driving growth in our own DTC channels, we expect this positive development to continue for the rest of the year,” said adidas CEO Kasper Rorsted. “In the East, we will return to growth in Asia-Pacific in the second quarter, while we expect the challenging market environment in Greater China to continue.
With strong double-digit growth in the vast majority of our markets, representing more than 80% of our business, we are well-positioned for success in 2022. “
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Currency-neutral revenues decrease 3% despite strong momentum in Western markets.
Revenue growth driven by continued strong momentum in Western markets
Gross margin declines to 49.9% despite lower discounts and first impact from higher prices.
Operating profit of € 437 million resulting in an operating margin of 8.2%.
Net income from continuing operations reaches € 310 million.
Inventories and operating working capital increase.
Adjusted net borrowings of € 3.690 billion.
Outlook for FY 2022 updated to reflect the impact from new lockdowns in Greater China
Despite several external factors continuing to weigh on industry-wide demand and supply, adidas confirms its top-and bottom-line outlook for 2022.
While the company continues to expect currency-neutral revenues to increase by a rate of between 11% and 13%, growth is now anticipated to come in at the lower end of this range due to the severe impact of covid-19-related lockdowns in China.
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