adidas is expecting to rebound from the COVID-19 related lockdowns and measures quicker than was originally anticipated. The German company recently revealed its second-quarter financial reports, with sales figures better than analysts had expected.
The stronger-than-expected performance is largely due to an increase in e-commerce, which has helped to bolster adidas after it was forced to close 70% of its stores around the globe. Store operations are slowly beginning to return to normal, however, with nine out of 10 stores around the world now open. Customer numbers are still down for in-store shopping, but a higher percentage of visitors are buying.
This points to adidas’ recovery continuing into the third-quarter of 2020, although revenue is still expected to fall by a single-digit figure from the same period last year. Overall, adidas expects to have an operating profit in the next quarter of €600 million EUR to €700 million EUR (approximately $710 million USD to $830 million USD), a huge increase from quarter two’s €333 million EUR (approximately $395 million USD) loss.
Speaking about the figures in a statement, Chief Executive Kasper Rorsted said, “We are now seeing the light at the end of the tunnel. From everything we know today, our recovery will continue in Q3.”
Despite all signs pointing towards a recovery, adidas still has a number of challenges in store. As well as uncertainty about the pandemic and how various countries will continue to be affected, the company has also been criticized by employees who have gone on to demand changes to adidas’ diversity and inclusion measures.
In related news, Ferrari recently posted a 60% drop in second-quarter earnings.
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