Despite a negative impact of more than €300 million from “macroeconomic restraints”, Adidas reports that currency-neutral sales are up 4% for the quarter.
These restraints include lockdowns last year in Vietnam, which reduced top-line growth by around €200 million in Q2, the brand said, along with a reduction of €100 million due to its suspension of business in Russia.
Notably, e-commerce, which now represents more than 20% of the company’s total business, showed double digital growth. Meanwhile, revenue development was the strongest in the quarter for the football, running and outdoor categories.
Revenue was primarily driven by Western markets, particularly in EMEA and North America. Currency-neutral sales grew by 7% in EMEA despite the impacts of the loss of Russian business. North American revenues increased by 21%, while revenues in Latin America jumped 37% and Asia-Pacific returned to growth at 3%.
Greater China saw a currency-neutral revenue decline of 35%, primarily due to Covid-19 restrictions in the country throughout the quarter.
“Our Western markets continued to show strong momentum in the second quarter amid heightened macroeconomic uncertainty. With Asia-Pacific returning to growth, markets combined representing more than 85% of our business grew at a double-digit rate,” said Adidas CEO Kasper Rorsted.
“With sports back at centre stage this summer, revenues in our strategic growth categories Football, Running and Outdoor all increased by double digits. However, the macroeconomic environment, particularly in China, remains challenging. The recovery in this market is – due to continued Covid-related restrictions – slower than expected. And we have to take into account a potential slowdown in consumer spending in all other markets for the remainder of the year.”