Adidas posts 28% decline in Q2 operating profit despite sales increase

Adidas on Thursday said operating profit fell by 28% in the second quarter to 392 million euros ($398.43 million), as results suffered from suspending business in Russia, higher supply chain costs, and COVID-19 lockdowns in China and Vietnam.

The German sportswear firm said currency-neutral sales rose 4% in the quarter but net income from continuing operations declined to 360 million euros from 387 million euros in the same period last year.

The company had cut its 2022 outlook in July, citing slower than expected recovery in China, and now expects currency-neutral revenues to grow at a mid- to high-single-digit rate this year. ($1 = 0.9839 euros)