Adidas released second-quarter earnings Thursday, and sales are strong everywhere except China.
Quarterly revenue was up 51% year-over-year to $6 billion. Net income hit $470 million, a sharp pivot from the net loss of $349 million during the same quarter last year.
- The company’s full-year outlook has been raised.
- It expects sales to increase by up to 20% and net income to reach as much as $1.77 billion in fiscal 2021.
- Operating overhead expenses were flat at $1.76 billion. That figure includes a $71 million cost that adidas temporarily incurred in its planned divestiture of Reebok.
However, online sales were down 14% year-over-year.
Adidas released its Q4 2020 earnings alongside a five-year plan focused on doubling e-commerce revenue and growing sales in Latin America, the Asia-Pacific, and China.
Greater China’s more than 16% drop in second-quarter sales comes amid an ongoing boycott of brands that publicly expressed concern about reports of forced labor on the Uyghurs in the Xinjiang region.
E-commerce sales were likely impacted because of consumers’ ability to visit brick-and-mortar stores after most lockdowns ended. The decline in online revenue also reflects the “exceptionally high growth” in 2020, when digital sales almost doubled at the height of the pandemic.
