Adidas expects billions in losses in China

Published 07/10/2021

Due to the COVID-19 pandemic, which has strongly affected almost all activities, the German shoe manufacturer had revised its forecast downwards regarding its sales.

In fact, the German group's share price had fallen by 10% in March as a result of the decline in its sales in China, estimated at €1bn. Moreover, this was mainly due to the closure of 12,000 shops since January.

According to Chairman Kasper Rorsted, Adidas generates most of its profit in China.

The DAX-listed company also expects about 100 million euros in sales reductions for its operations in Japan and South Korea, reports Hong Kong medium, Hypebeast.

The cancellation of events such as the Tokyo Olympics 2020 could also reduce Adidas's margin. The losses could amount to 70 million euros. According to the CEO such events are a sales driver, but Adidas remains positive and is not planning any job cuts.