Net sales between April and June dropped by 35 percent year-on-year to 3.6 billion euros, according to the German company. Adidas recorded a significant sales decline in its stationary distribution channels due to the global coronavirus pandemic.
Amid falling global sales, business of Adidas in China in Q2 remained stable due to double-digit growth in May and June, according to the German company.
Adidas announced in June that China was the "company's first major market on the road to recovery." In China, all company stores as well as partner-operated stores reopened in mid-April and lower customer numbers in stores in May was more than offset by higher conversion rates and the "exceptional growth" of the e-commerce business.
Back in April, Adidas secured German government-backed loans of 3 billion euros that were introduced to mitigate the economic effects of the COVID-19 pandemic. Most of the money, 2.4 billion euros, had been granted by the state-owned German development bank KfW.
"The past quarter brought unprecedented challenges for our business as large parts of the world were in lockdown," said Adidas chief executive officer (CEO) Kasper Rorsted.
At the high point of lockdowns, 70 percent of Adidas' stores worldwide had been closed due to restrictions during the COVID-19 crisis, according to the German sportswear manufacturer.
"We are now seeing the light at the end of the tunnel as the normalization in the physical business continues, with the vast majority of our stores being operational again," added Rorsted.
Adidas "experienced exceptional growth in online sales" which had contributed more than one-third of its total business, both through its own channels as well as partners' e-commerce platforms. Sales via the company's own e-commerce channels increased by 93 percent in Q2.
Since the end of Q2, revenues of Adidas has continued to gradually recover. In the global e-commerce business, the company continued to record "exceptional" double-digit growth. According to Adidas, almost all of its own and partner stores worldwide (92 percent) had reopened by now.
Adidas still refrained from providing a full-year outlook due to the "prevailing uncertainties around the further development."
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