Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Business
Shivani Kumaresan

Adidas Shares Slide As China Lockdown Weighs On Q1 Earnings, FY22 Outlook

  • Adidas AG (OTC:ADDYYreported first-quarter FY22 sales growth of 0.6% year-on-year to €5.3 billion. Currency-neutral sales declined 3% as supply constraints reduced the top-line by €400 million.
  • Currency-neutral sales across North America rose 13%, EMEA improved 9%, and Latin America jumped 38%.
  • The challenging market environment and COVID-19-related lockdowns in Greater China and Asia-Pacific continued to weigh on the top-line development.
  • The gross margin for the quarter contracted by 190 basis points to 49.9% due to high supply chain costs.
  • The operating margin was 8.2%, and the operating income for the quarter was €437 million.
  • The company held €3 billion in cash and equivalents as of March 31, 2022.
  • Inventories increased 15% Y/Y to € 4.542 billion.
  • EPS was €2.55 versus €2.86 last year.
  • "In the East, we will return to growth in Asia-Pacific in the second quarter, while we expect the challenging market environment in Greater China to continue," said CEO Kasper Rorsted.
  • Outlook: Adidas sees FY22 currency-neutral revenue growth at the lower end of 11% - 13% due to new lockdowns in China.
  • The company expects an FY22 gross margin of about 50.7% (previously: 51.5% - 52.0%).
  • Price Action: ADDYY shares are trading lower by 4.40% at $95.00 on the last check Friday.
  • Photo Via Wikimedia Commons
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.