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Problems in China:
Because of the lockdowns, business is paralyzed
Photo: ALEX PLAVEVSKI/EPA-EFE/REX
Because of the corona lockdowns in China and after a slump in profits in the first quarter, the sporting goods manufacturer Adidas has lowered its targets.
Currency-adjusted sales shrank by three percent to 5.3 billion euros in the first three months of the year, while profit from continuing operations fell by almost 40 percent to 310 million euros.
The operating result fell by 38 percent to 437 million euros, the group announced on Friday.
manager magazin had already reported on this threatening development in February.
The temporary corona-related production stop in Vietnam alone cost 400 million euros in sales.
For the year as a whole, Adidas now only expects sales growth in the lower part of the targeted range of eleven to 13 percent, and profits will also be more like 1.8 than 1.9 billion euros.
Also cut back on margins
Adidas also has to cut back on margins because the lucrative business in China is paralyzed - partly because of the lockdowns.
The operating margin should now only be at the previous year's level at around 9.4 percent.
Adidas had previously promised 10.5 to 11 percent.
CEO
Kasper Rorsted
(60) is now counting on the second half of the year and the tailwind from major sporting events such as the World Cup in Qatar.
Then sales should increase by more than 20 percent.
"We remain agile but will not compromise our long-term growth opportunities for short-term profit optimization," said Rorsted.
rei/Reuters, dpa-afx