Adidas profit sharply falls

BERLIN: Adidas AG said Monday that net profit and sales sharply fell in its first quarter, and it warned that the second quarter should be even more severely hit by the coronavirus pandemic. The German sporting-goodscompany said net profit for the period was 31 million euros ($33.5 million), down 95% from EUR632 million a year earlier. Sales fell about 19% to EUR4.75 billion as the pandemic forced Adidas to close shops in Asia-Pacific during the period as well as in the rest of the world in March due to numerous lockdowns, it said. Adidas warned that its second quarter will be even more affected by the coronavirus as more than 70% of its stores are currently closed. “Consequently, both top-line and bottom-line declines in the second quarter of 2020 are currently expected to be more pronounced than those recorded in the first quarter, with currency-neutral sales projected to come in more than 40% below the prior year level and the operating result to be negative,” it said. Adidas said that sales in Greater China are still gradually recovering, while e-commerce sales on a currency neutral basis increased by 55% in March. At the end of the first quarter, Adidas had EUR1.98 billion in liquidity, it said.