Sporting goods maker Adidas on Thursday confirmed second-quarter net profit of 360 million euros, which it had provisionally reported at the end of July, as a slower-than-expected recovery in China weighs on the outlook.
At the end of July, the group lowered its annual forecast against the background of health restrictions in the most important Asian market. The company now expects global annual sales to grow by 5 to 10 percent in constant currencies, compared to a previous range of 11 to 13 percent.
Net profit is expected to be 1.3 billion euros, while a range of 1.8 billion to 1.9 billion euros was originally expected.
While the company has so far seen “no significant slowdown in product sales and no significant cancellation of large orders” outside of China, the adjusted forecast takes into account a “potential slowdown in consumer spending” in these other markets, Adidas said.
Second quarter results benefited from strong momentum in western markets and a return to growth in Asia Pacific ex-China. From April to June, adidas sales increased 4 percent year-on-year at constant exchange rates to 5.6 billion euros.