adidas Reports Its Sales Drop 19% & Missed Profit Expectations By 93%

Source: Sean Gallup / Getty

The three stripes took a big L in Q1 2020.

 

The fashion industry hasn’t been spared during the coronavirus global pandemic. adidas reported it has missed its profit expectations by a whopping 93 percent and also saw its sales drop 19 percent because of the rona.

The German sportswear company was initially projected to hit EUR 263 million (approx. USD 285.3 million) but fell dramatically short of analyst expectations, only bringing in EUR 65 million (approx. USD 70 million). The 19 percent dip in sales, which, if you do the math, is about USD 5.15 billion comes up short of the forecasted expectations of USD 5.26 billion.

Looking forward to Q2 2020, things are looking even bleaker for the sportswear giant. adidas is already hinting that it could see a 40 percent in its sales. adidas also revealed its shares were down 1.2 percent in the early stages of Q1. They have since fallen by a third as the country struggles to grip with the coronavirus global pandemic.

Since the world hit the pause button, adidas saw more than 70 percent of its stores close worldwide. If there is any silver lining in this news, adidas did see its e-commerce sales rise 35 percent, which helped soften the blow from its substantial losses.

It looks like recently announced billionaire, Kanye West, and his YEEZY line is the company’s lifeline. But for how long?

Photo: Sean Gallup / Getty

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