Adidas are missing out on billions

A boycott in China, more expensive freight rates and idle factories in Vietnam are dampening the prospects for Adidas. The world’s second largest sporting goods manufacturer after Nike is looking more cautiously towards the full year after a slump in profits in the third quarter. “There are currently many things that are beyond our control,” said Chief Financial Officer Harm Ohlmeyer on Wednesday. “The supply chain issues will continue to affect our results over the next two quarters.” Overall, Adidas has to cope with sales losses of more than two billion euros due to buyers’ strike and corona lockdowns. CEO Kasper Rorsted confirmed the forecast, which was only raised in the first half of the year, but expects profit and sales growth at the lower end of the target range. The profit from continuing operations as well as the operating margin should be in the lower range of the announced corridor of 1.4 to 1.5 billion euros or 9.5 to 10 percent.

Reference-www.sueddeutsche.de

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