Adidas Swung to Loss in 2Q, Hit by Pandemic
August 06 2020 - 2:43AM
Dow Jones News
By Cecilia Butini
Adidas AG said Thursday that it swung to a loss in the second
quarter, citing unprecedented challenges brought by lockdowns in
large parts of the world.
The German sporting-goods company posted a net loss of 295
million euros ($350 million) in the quarter, down from a profit of
EUR531 million a year earlier. Net sales dropped 35% to EUR3.58
billion from EUR5.5 billion a year prior, as the company closed
stores due to the pandemic.
Adidas said, however, that sales through its e-commerce channel
increased 93% during the quarter.
"We are now seeing then light at the end of the tunnel as the
normalization of the physical business continues," Chief Executive
Kasper Rorsted said.
Adidas expects an improvement in operating profit of around EUR1
billion in the third quarter compared with the second quarter, when
it had an operating loss of EUR333 million. The expectation is
based on the assumption that traffic in physical stores continues
to improve in the absence of major lockdowns.
The company said it wasn't able to provide full-year outlook due
to uncertainties around the further development of the coronavirus
pandemic.
Write to Cecilia Butini at cecilia.butini@wsj.com
(END) Dow Jones Newswires
August 06, 2020 02:28 ET (06:28 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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