Adidas is one of many retailers expected to be hit by the conflict between Russia and Ukraine.
The German sportswear retailer shared its latest outlook for fiscal year 2022 on Wednesday, taking into account the risk of up to 250 million euros (about 1.745 billion yuan) from the affected business in Russia.
This accounts for about half of Adidas's revenue in the region and has an impact on Adidas's overall growth of about 1 percentage point.
Like Nike, puma, andrma and more, Adidas recently suspended all retail and e-commerce sales in Russia, in part due to the impact on its business in the region. Adidas also closed its offices and stores in Ukraine.
Earlier this month, Adidas suspended its partnership with the Russian Football Union (RFU), the Russian football regulator. Adidas also donated $1 million to Ukrainian refugees and charities.
Adidas replaces the head of China business
Adidas, a German sportswear group, announced on Tuesday that Adrian Siu was the managing director of Greater China, replacing Jason Thomas, who took office in 2019, who will be transferred to senior vice president of global franchise.
Adrian Siu previously worked mainly in the business departments of Adidas in Hong Kong and Shanghai, and also served as the CEO of Cosmo lady. It is noteworthy that Adidas China business has recorded double-digit decline for two consecutive quarters, which has seriously slowed down the growth pace of the group's performance.
Adidas fourth quarter revenue fell 3%
Affected by factors such as Vietnam's supply chain shutdown and challenges in the Chinese market, Adidas's fourth quarter sales fell 0.1% year-on-year to € 5.1 billion, and its revenue fell 3% after excluding exchange rate factors. In 2021, Adidas sales soared by 15.2% to 21.234 billion euros, with a gross profit margin of 50.7%, and net profit soared by 387.4% to 2.158 billion euros.
By region, Adidas's revenue in North America rose 16.6% year-on-year to 5.105 billion euros, Europe, the Middle East and Africa rose 24% to 7.76 billion euros, while the growth rate in the Chinese market narrowed to 3%, recording 4.596 billion euros, the Asia Pacific market except China also recorded only 7.7% growth to 2.18 billion euros, and Latin America rose 47.72% to 1.446 billion euros.
