Huge China growth boosts adidas Q1 results
Sports group adidas has reported revenues of more than €5.25 billion in the first quarter of 2021, an increase of 20.2% compared to the same quarter last year.
These figures relate to adidas only; the group took a decision in 2020 to sell Reebok and it has presented figures that refer to the company’s continuing operations.
Chief executive, Kasper Rorsted, said these figures represented “excellent revenue growth” and that adidas would upgrade its outlook for the year because it was now “even more confident about a strong top-line recovery this year, even though the environment is not yet back to normal”.
In the first quarter, adidas revenues rose by 8% year on year in North America and in Europe. Its increase in revenue in China was 156%.
Europe remained its biggest market, with revenues for the quarter of almost €1.8 billion, but China overtook North America; revenues in these two markets were €1.4 billion and a little under €1.2 billion respectively.
The group said it had “healthy brand momentum and stronger-than-expected demand for products”. Based on this, it said it expected revenue growth for the full year to be close to 20%.
It added that “an array of innovative product releases”, including a circular version of its Ultraboost shoe (which will be made-to-be-remade”) and a performance running version of its Futurecraft 4D footwear, would help it achieve this objective.
Image shows the adidas flagship store in Shanghai.
