HomeFinanceAdidas AUD$900 Million Under Revenue Projection

Adidas AUD$900 Million Under Revenue Projection

Adidas AUD$900 Million Under Revenue Projection

German sportswear company, Adidas, has reported a 3% growth in revenue during the third quarter of 2021, despite falling €600 million (AUD$936 million) below revenue growth projections.

Total revenue for the company between July and September was €5.8 billion (AUD$9.05 billion).

The drop in projected revenue for the quarter is due to the many lockdowns across the Asia-Pacific region which caused supply chain issues, as well as significantly higher supply costs.

Adidas chief executive, Kasper Rorsted, said: “Adidas performed well in an environment characterised by severe challenges on both the supply and demand side.”

“As a consequence of successful product launches we are experiencing strong top-line momentum in all markets that operate without major disruption.

“Doube-digit growth in our direct-to-consumer businesses in EMEA, North America, and Latin America is a testament to the strong consumer demand for our products,” Rorsted said.

The Asia-Pacific region faced a sale drop of 8%, while Latin America saw a 55% increase and North America saw a 9% increase in revenue.

For more information on Adidas’ performance last quarter see, Sportswear Giant, Adidas Rolling in Cash at Ministry of Sport.

Yet despite the lack of growth this quarter, the annual revenue is still expected to reach between €1.4 billion (AUD$2.2 billion) and €1.5 billion (AUD$2.3 billion), with its gross margin expected to be around 51%, 1% short of last year.

This slight annual decrease is due to the fluctuation of currency throughout the year, which has been heavily influenced by COVID-19.

“At the same time, we are navigating through the current worldwide supply chain constraints,” Rorsted said.

“Despite all challenges, we are on track to delivering a successful first year within our new strategic cycle,” he said.

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