The manufacturer of clothing and sports equipment Adidas obtained an attributed net profit of 558 million euros in the first three months of 2021, compared to the profits of 31 million recorded in the same period of the previous year, as reported by the company, which has revised upwards their expectations for the year as a whole.
Adidas sales between January and March totaled 5,268 million euros, 20.2% more than a year earlier, including a growth of 3.8% in Europe, the Middle East and Africa (EMEA), while in North America fell 0.8% to 1,157 million.
Sales in China reached 1,402 million euros, with an annual growth of 151%, while in Asia Pacific they totaled 603 million, 0.1% more, and in Latin America they fell 2.1%, to 297 million.
On the other hand, the company of the three bands highlighted that its digital sales during the first quarter of 2021 increased by 43%, compared to the increase of 35% in the previous three months and doubling in the course of the last two years.
Despite the adverse impact of prolonged shutdowns in Europe, industry-wide supply chain challenges and the geopolitical situation, Adidas has improved its outlook for the whole of 2021. Furthermore, the multinational is confident that hosting events Sports events such as the Eurocup and the America’s Cup will provide a unique setting to showcase products and brands to a global audience.
Thus, discounting the effect of the exchange rate, the company now expects its sales to increase at a rate of between 17% and 19% in 2021, including an acceleration of around 50% in the second quarter.
Likewise, Adidas is confident of reaching a net profit from current operations of between 1,250 and 1,450 million, compared to earnings of 461 million in 2020, with an expected adverse impact of about 200 million in relation to the sale of Reebok.
“Although external uncertainties remain high, 2021 will be a successful year for Adidas,” said Kasper Rorsted, CEO of the German company.