Sportswear Giant Adidas, Rolling In Cash
erman 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.