German sportswear company Adidas has upraised its outlook for full-year sales and profitability. The uplift was driven in all market segments except Greater China, as in late March Western brands faced a boycott of their products in China. Revenues in Latin America more than tripled during the quarter while sales in Asia-Pacific grew by 66% and currency-neutral sales in EMEA & North America almost doubled.
“With sports taking back center stage this summer, we delivered a very successful quarter. Driven by the strength of our brand and better than expected demand for our products, we saw an acceleration in our top-and bottom-line,” said Kasper Rorsted, Chief Executive of Adidas “Sales in our strategic growth markets EMEA and North America almost doubled. Revenues in our key categories Football and Outdoor even grew at triple-digit rates. The share of full-price sales increased strongly, fuelling exceptional profitability improvements. This momentum gives us all the confidence to increase our full-year outlook despite the external challenges that our industry continues to face.”
Adidas is now expecting sales growth of up to 7% in the second half of the year compared to the 2020 level, currency-neutral sales to increase at a rate of up to 20% year-on-year in 2021, driven by strong double-digit improvements in all markets and net income to increase to between €1.4 billion and €1.5 billion from continuing operations.