Author：Salad dressing
Compile：Azure
Source：GPLP
On June 4, Adidas (ADDDY.US) announced the latest business recovery news.
It is reported that Adidas has restored its self-operated stores and dealer stores in China since mid-April. At the same time, the growth of e-commerce business and the growth of conversion rate have offset the negative impact of store visitors’ reduction to some extent, so sales in China resumed growth in May.
In addition, Adidas also claimed that: At present, two-thirds of Adidas stores have resumed business, and some stores have shortened their operating time.
Among them, in the Russia/CIS region, about half of the stores have resumed business, but the sales rate of stores in North America and Latin America still has not reached 50%.
It is worth noting that under the influence of the situation in the United States, many popular retail stores across the country have been robbed, so far Adidas has announced the closure of all stores in the United States.
And the first quarter results released by Adidas before show that in the first three months of 2020, more than 70% of Adidas stores worldwide have closed.
During the period of closure, the entire company’s business was also almost at a standstill. Adidas’ net sales in the first quarter decreased by 19% from the same period in 2019 to 4.753 billion euros, and the net profit has been reduced to 26 million euros, a year-on-year
decrease of 97% .
In the first quarter alone, Adidas has lost 800 million euros in sales in China, a decrease of 58%, which is a huge loss.
At present, Adidas’ stock price has also experienced huge fluctuations. Entering 2020, Adidas’ share price also fell to $87.65/share in March. Compared with the highest share price of $176.36/share in 2020, it has dropped by 50.30%.
Although the current stock price has rebounded, it is still unknown whether the stock price will continue to be affected under the continuing riots in the United States.
Adidas said in the release of performance recovery news that it will meet profit expectations in the second quarter of 2020. As for whether Adidas will do so, GPLP.cn will continue to pay attention.
