Corona lockdown in China: Adidas lowers forecast

Created: 05/06/2022Updated: 05/06/2022 09:43

Adidas lowers its forecast due to the corona lockdowns in China.

© Federico Pestellini/Imago Images

The tough corona lockdowns in China also have an impact on German companies.

Adidas now has to lower its forecast.

Herzogenaurach - Because of the corona lockdowns in China, the sporting goods manufacturer Adidas has lowered its forecast.

The company, which is listed on the Dax, announced on Friday in Herzogenaurach that profit from continuing operations should now only be in the lower range of the targeted range of 1.8 to 1.9 billion euros.

The operating margin is expected to be around the previous year's level of 9.4 percent.

Adidas had previously promised 10.5 to 11 percent.

In terms of sales, however, the Management Board is sticking to its expectation of currency-adjusted growth of 11 to 13 percent.

Adidas: Advertising significantly reduces operating income

In the first quarter, the company had earned slightly more than expected by analysts.

Sales from January to March increased slightly to 5.3 billion euros.

Adjusted for currency effects, revenue fell by three percent.

Adidas benefited from gains in North America, Latin America and Europe.

Because the board had to put significantly more money into advertising, the operating result fell by 38 percent to 437 million euros.

Profit from continuing operations fell almost 40 percent to 310 million euros.

China lockdowns weigh on European companies

The strict corona lockdowns in China are weighing heavily on the business of European companies in the People's Republic.

In a survey by the European Chamber of Commerce in Beijing, 75 percent of the companies surveyed said that the strict containment measures were having a negative impact on their operations.

Almost 60 percent of the companies also stated that they had reduced their sales forecast in China for the current year.

The companies mainly complained about problems in the areas of logistics, warehousing and supply chains.

In addition, it is difficult to plan business trips or to hold personal meetings at all.

It is also not always easy to access raw materials or components.

In addition, the delivery of finished products within China is proving to be difficult.