“The past quarter brought unprecedented challenges for our business as large parts of the world were in lockdown. I am grateful for the relentless and agile efforts of our teams, which enabled us to take the right actions for our consumers, our partners and the company. We addressed the challenges and went after opportunities, as reflected in our e-com business nearly doubling in Q2. We are now seeing the light at the end of the tunnel as the normalization in the physical business continues, with the vast majority of our stores being operational again”, stated adidas CEO Kasper Rorsted.
Revenue Down by 34%
adidas recorded a material revenue decline in its physical distribution channels during the second quarter of 2020 as the global coronavirus pandemic caused a very large number of store closures as well as a pronounced traffic reduction within the parts of the store fleet that were reopened. At the same time, the company experienced exceptional growth in online sales, which accounted for more than one-third of its total business, through its own as well as partners’ e-commerce platforms. Sales through the company’s own e-commerce channel increased by 93% during the quarter. In total, second quarter revenue decreased by 34% in currency-neutral terms. While sales at brand adidas declined by 33% in the second quarter, Reebok revenue was down by 42%, reflecting the brand’s higher exposure to the US market. In euro terms, revenue decreased by 35% to 3.579 billion euros (2019: 5.509 billion euros).
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