Adidas reported that it missed its profit expectations by 93 percent and had a 19 percent fall in sales in Q1 2020 due to coronavirus pandemic.
The brand was expected to hit €263 million EUR but failed to do so as the analyst had predicted first-quarter total of just €65 million EUR. Furthermore, its decrease of 19 percent in sales equates to approximately $5.15 billion USD, which also failed the prediction as it expected approximately $5.26 billion USD.
The sports giant has warned that it could also see a fall of 40 percent in its sales in the second quarter, and announced that shares were down 1.2 percent in the early stages of Q1, but have since fallen by more than a third during the coronavirus pandemic. More than 70 percent of its stores are closed worldwide, while its e-commerce sales have risen by 35 percent.
The news follows on from Adidas’s recently approved government loan, which is set in place to help the three striped-imprint through this complicated time.