- Latest financial statement says annual revenues will “be at the bottom” of estimates
- End-of-year net income now expected to be between â¬ 1.4bn and â¬ 1.5bn
German sportswear giant Adidas reported a slow third quarter, with revenue growth of just 3% year-over-year (YoY) reaching the company’s year-end forecast.
The impact of lockdowns in the Asia-Pacific region and supply chain issues caused Adidas to lack â¬ 600 million ($ 687.98 million) in revenue, the company said. Revenue between July and September reached 5.8 billion euros ($ 6.65 billion), but the German sportswear giant said it now expects overall annual revenue growth “at the bottom. Of the 20% year-over-year range.
The same forecast applied to the operating margin (between 9.5% and 10%) and the net operating income, which is now estimated between 1.4 billion euros (1.61 billion dollars) and 1.5 billion euros ($ 1.72 billion) for the year.
Citing “significantly higher” supply chain costs and a “less favorable market,” Adidas said its gross margin is now expected to increase to between 50.5% and 51% in 2021, after being previously projected at around 52%. hundred.
âAdidas has performed well in an environment characterized by serious challenges on both the supply and demand sides,â said Kasper Rorsted, CEO of Adidas.
âThanks to successful product launches, we are experiencing strong sales momentum in all markets that operate without major disruption. Double-digit growth in our direct-to-consumer business in EMEA, North America and Latin America is a testament to strong consumer demand for our products.
âAt the same time, we are navigating through the current constraints of the global supply chain. Despite all the challenges, we are on track to achieve a successful first year within our new strategic cycle. “