Adidas’ online sales nearly doubled during its second quarter helping its beat analyst expectations despite posting billions in losses.
Adidas reported “exceptional growth in online sales” during the quarter seeing sales through its own ecommerce channel jump 93 per cent, accounting for more than a third of its total revenues.
Another highlight was the sharp rise in sales of athleisure, running and yoga products as the “entire dress for work changed overnight”.
It was not enough to offset an overall 35 per cent dive in sales to €3.6 billion (£3.25 billion), compared to €5.5 billion (£4.97 billion) it made a year earlier.
This significant decline still beat analyst estimates and alongside predictions that sales will fall by mid to high single digits during its third quarter, Adidas saw its stock jump 4.3 per cent.
While sales in China began to grow by double digits in the latter months of the quarter as the country began to reopen, its subsidiary Reebok posted a 42 per cent drop in revenues due to higher exposure to the US.
Adidas was forced to shut around 70 per cent of its stores during the pandemic but says 90 per cent of those have now reopened but are struggling to achieve anywhere near pre-coronavirus levels of footfall.
“We are now seeing the light at the end of the tunnel as the normalization in the physical business continues, with the vast majority of our stores being operational again,” its chief executive Kasper Rorsted said.
“From everything we know today, our recovery will continue in Q3. Where we are open for business, be it in physical stores or in the digital space, consumer demand for our products is high.
“This is a solid foundation to build on as the long-term growth prospects for the industry have become even more promising.”
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