HomeFinanceSportswear Giant Adidas, Rolling In Cash

Sportswear Giant Adidas, Rolling In Cash

adidas store

Sportswear Giant Adidas, Rolling In Cash

German Sportswear brand, Adidas, has nearly doubled its revenue, amid recovering from the losses incurred by COVID-19. 

Adidas revenue increased by 40% (currency-neutral basis) through the first half of the year, with overall revenue rising from €7.733 billion (AUD$12.3 billion) to €10.345 billion (AUD$16.6 billion), a 34% increase. 

Additionally, Adidas’s net income has risen by over a billion euros, increasing from a loss of €217 million (AUD$347 million) to €890 million (AUD$1.4 billion) year on year.

During the first six months of 2021, Adidas reported an operating profit of €1.248 billion (AUD$1.977 billion), up 12.1%, in contrast to the €215 million (AUD$344 million) deficit for the same period last year.

Adidas chief executive, Kasper Rorsted, said: “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.

“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,” Roasted said. 

Adidas’ operating profit has almost returned to pre-pandemic highs, reaching €543 million (AUD$869 million) in the second quarter, compared to €263 million (AUD$430 million) in 2020, that being an 18% increase. 

The figures are released at a time where the sportswear industry is becoming a dominant force in the fashion realm, and Adidas shows no signs of slowing down, predicting a 52% gross margin wrapping up 2021. 

Share With:
Rate This Article
No Comments

Sorry, the comment form is closed at this time.