German sportswear maker Adidas today reported a 78% drop in profit for the full year last year due to the COVID-19 outbreak, which hit the company hard. But Adidas expects profits to rebound significantly next year.
AFP reports that Adidas, headquartered in Bavaria, saw its full-year profit plunge from 1.97 billion euros in 2019 to 432 million euros in 2020.
Adidas last year annual sales fell 16% from the previous year to 19.8 billion euros. Among them, the flagship eponymous brand sales fell 13% annually, and its U.S. sports brand Reebok (Reebok) annual sales also shrank 16% compared to 2019.
Adidas was forced to suspend operations in many of its stores worldwide last year as a result of the 2019 coronavirus disease (Chinese Communist Virus, COVID-19) vaccination restrictions. The only bright spot in the financial report was Adidas’ 53% jump in online sales last year, jumping on 4 billion euros, accounting for more than 1/5 of total sales.
Adidas has said in February that it will sell the underperforming sharp running, and today released a five-year growth strategy plan to remove the brand.
Adidas in 2006 to compete with U.S. rival Nike (Nike), to 3.1 billion euros to buy the price of sharp running. But since then, the performance of the sharp run has not improved, even in recent years to find “Mrs. Bay” Victoria Beckham (Victoria Beckham), pop singer Ariana (Ariana Grande) and Cardi B (Cardi B) and other big stars endorsement, but also did not reverse the decline.
Adidas emphasized in a statement today that sales in most regions of the world began to recover in the fourth quarter of last year; with the exception of Europe, where about half of the stores were still closed at the end of the year.
However, Adidas CEO Kasper Rorsted said in the statement, with 95% of the global stores have resumed operations, Adidas performance this year “will be quickly out of the”.
Adidas estimates that this year’s annual sales growth will be 15% to 20% compared to last year, of which the growth rate of China, Asia-Pacific and Latin America and other markets are expected to be higher; annual profit is also expected to rebound to 1.25 billion to 1.45 billion euros.