Adidas reports that its overall business in Greater China turned positive in May, as compared to a year earlier, leading it to predict more or less flat revenues in the region during the second quarter ending on June 30. The region represents about one-quarter of the Adidas Group’s total turnover and a higher percentage in terms of profits.
All the company’s mono-brand stores and those operated by third parties in Greater China are open since mid-April. In May, while store traffic remained below last year’s level, targeted efforts to revitalize their sales have led to sequential improvements. The lower store traffic has been more than offset by higher conversion rates and the continued “exceptional” performance of the company’s e-commerce business, Adidas said in a statement issued on June 4.
On the other hand, Adidas said it doesn’t expect a significant deviation from the guidance given on April 27, when the management indicated that the second quarter will be worse than the first one, with an overall drop in sales of more than 40 percent.
At the retail level, only around half of Adidas’ stores in Russia and the CIS countries have resumed operations. In the rest of Europe, three-quarters of the stores have reopened, generally with reduced opening hours. While almost all company stories in Asia-Pacific and Emerging Markets have resumed operations, opening rates in North and South America are still significantly below 50 percent.