German sportswear brand Adidas reported a set of disappointing second-quarter sales on Thursday, yet it remained optimistic for the second half of the year, expecting a recovery.
Adidas shares were down by 3.5% during early trade on Thursday, and whilst the shares had rallied and steadied themselves in recent weeks with the hopes that this might give the company a more positive outlook, other sportswear companies such as Puma have experienced a drastic rise in sales and profit forecasts.
Adidas’ second-quarter sales increased by a currency-adjusted 4% to €5.51 billion, which is right below the average analyst forecasts of €5.54 billion. The company has had to take a massive hit, particularly in the football category, one of its largest categories, just a year after the FIFA World Cup.
Adidas had already issued a warning earlier on the year in March, stating that supply chain issues would hinder sales growth during the first half, noting problems in North America’s demand for mid-market clothing in particular.
The German company also stated that it was confident that sales will increase drastically in the second half, thus allowing it to confirm a full-year forecast for currency-neutral sales growth ranging from 5% to 8% with net income from continuing operations of between €1.88 billion and €1.95 billion.
The company also experienced some positive news during this quarter, with quarterly net profit from continuing operations rising by 10% to €462 million, which has also been helped out by another quarter of steady ecommerce growth, with sales from online platforms rising by 37%. Notably, the company managed to record a higher increase in ecommerce sales rather than wholesales.