Adidas closed 40% of its stores in Europe following the pandemic

German sports goods manufacturer Adidas reported its operating results for the third quarter of 2020.

German manufacturer of sporting goods Adidas has announced its operating results for the third quarter of 2020. According to the agency Reuters, sales of the holding decreased by 3% to about 5.96 billion euros, and operating profit decreased by 12% to 794 million. 

The results were higher than predicted – analysts expected Adidas revenue to fall to 5.91 billion euros and profit – to 723 million. In the fourth quarter, the company expects a further decline in sales and a drop in profits to a rate of 100 to 200 million euros.

Currently, about 93% of all stores remain open in the global network under Adidas management. During that period, the share of closed stores on the European market reached 40%. The reason is the repeated lockdowns introduced in many Western and Central European countries. 

“While we were on the growth path at the beginning of the quarter, the worsening pandemic in many parts of the world again requires our patience and support,” commented Kasper Rorsted, CEO of Adidas. 

Since the report’s release, Adidas stocks have fallen in price by more than 5 percent after a growth triggered by news of successful testing of a new Pfizer vaccine. The company has not commented on the possible sale of the Reebok brand. Reebok’s revenue fell by 7% in the third quarter. Adidas’ online turnover for the past three months has increased one-and-a-half times, with two-thirds of the demand from buyers in the U.S. and Europe.