Adidas is cautious about the future given the new wave of COVID-19 infections
The sportswear company Adidas posted Q3 2020 figures, which showed the pandemic's effects on the business.
In Q3, Adidas reported a 3% fall in sales to €5.96 billion. Analysts were expecting the decrease to reach €5.91 billion. Its operating profit dropped 12% to €794 million. The decline was ahead of the €723 million forecasted.
Despite the 4% increase in sales reported in Europe, those in the USA fell 1%. In China, the drop was even bigger - 5%. On the other hand, e-commerce sales surged 51%.
According to Adidas, the decreases are due to the new wave of COVID-19, which forced the company to close stores.
For the future, the company expects the sales to decline as much as they did in Q3, despite the return to growth projected in China and the strong demand for products designed by Beyoncé. The operating profit is seen below the consensus at €100 million with a high of €200 million.
Following the report, Adidas' stock price fell more than 5%.
Sources: reuters.com, finance.yahoo.com