Adidas AG (ADDYY) sees steeper second-quarter sales and profit declines than in the first three months of the year as more than 70% of its global stores remain shut due to the coronavirus pandemic.
The sportswear clothing company said it expected second-quarter sales to drop more than 40% below the prior year level and the operating result to be negative. At the same time however, Adidas decided to withhold its full-year outlook for 2020 citing uncertainties, primarily around the duration of store closures and the pace of normalization once stores reopen.
Adidas provided the update as it reported first-quarter earnings. The sportswear retailer said that the strong growth of 35% in its e-commerce sales could only partially offset the material revenue decline from in-store channels. In March,