Home » Markets » Coronavirus forces Adidas to miss forecasts with 93% profit plunge, warn on sales
Coronavirus forces Adidas to miss forecasts with 93% profit plunge, warn on sales
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BERLIN (Reuters) – Adidas reported a 93% plunge in first-quarter profit and sales off 19%, missing forecasts, and warned of a deeper hit to second-quarter revenue as lockdowns forced the German sportswear maker and other retailers to close stores.
First-quarter operating profit fell to 65 million euros, well short of the 263 million expected by analysts.
Adidas said it had taken a hit of around 250 million euros on unsold stock in greater China, purchase order cancellations and higher bad debt provisions.
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Sales fell 19% to 4.75 billion euros versus 4.85 billion forecast by analysts, Refinitiv Eikon data showed, and the company warned of a possible 40% fall in the second quarter.