The sportswear giant was forecasted to bring in around €263 million but fell short of that target with its first-quarter total, netting just €65 million. Additionally, it saw a decrease of 19 percent in sales after earning €4.7 billion, and falling below the forecasted expectations of around €4.9 billion. The company’s net income from continuing operations also decreased 97 percent to €20 million after bringing in €631 million in 2019 as a result of more than 70 percent of the company’s storefronts still being closed due to the outbreak.
"Our results for the first quarter speak to the serious challenges that the global outbreak of the coronavirus poses even for healthy companies," said Adidas CEO Kasper Rorsted. "I am proud of how our Adidas family has been working together to support both our company and our communities. At the moment, we are focused on managing the current challenges and doubling down on the recovery in China and the opportunities we see in e-com. While we prepare for the return to a more normalized state of the business, we also remain realistic: Over 70 percent of our stores worldwide are currently closed."
The Three Stripes is currently projecting that the decline in sales will spill over into the second quarter at more than 40 percent below what was reported in the previous year.