Adidas reports 'earlier-than-expected' return to growth in Greater China

Adidas has said it has seen an “earlier-than-expected” return to growth in Greater China since reopening its stores in the region in mid-April.

The German sportswear giant said that footfall remained below the prior-year level but was “more than offset” by an increase in conversion rates and “exceptional growth” in its e-commerce business.

That meant that overall revenue growth in Greater China turned positive for the month of May.

Adidas said it expects now second-quarter sales in the region to be around the prior year-level.

Around two-thirds of the brand’s global store network is now at least partially open. Almost all own stores in other markets within Asia-Pacific as well as in emerging markets have resumed operations.

In Europe, three-quarters of its stores have reopened, though the majority are operating at reduced hours. Around half of its stores in Russia/CIS have also reopened, while “significantly” fewer than 50 percent of its stores in North America and Latin America have reopened.

Adidas said its guidance is still in line with what it announced in April - that it could see a possible 40 percent drop in second-quarter sales.

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