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German sportswear company Adidas shrugged off Chinese calls in March for a boycott of its
products and raised its 2021 sales forecast on Friday, saying it expects upcoming sporting events to
drive strong demand for new products. Adidas said it now sees sales growing at a high-teens
percentage rate in 2021, compared with a March forecast for mid-to-high teens growth, with a jump
of around 50 percent expected in the second quarter.
It said the acceleration would be driven by new products such as Ultraboost running shoes that are
designed to be recycled, as well as big sports events like the European soccer championship and
the Copa America.
Shares in Adidas, which had fallen in recent weeks on concerns about sales in China, were up 7
percent at 07:28 GMT, the biggest gain on the German blue-chip index. Shares in rival Puma were
also up 1.8 percent. “A slight upping of 2021 organic growth guidance suggests that concerns
around the ... damage to Chinese prospects appear overblown,” said Jefferies analyst James Grzinic.
Western brands including Adidas, Nike and Puma faced online attacks in China in March over past
statements saying they would not source cotton from Xinjiang after reports of human rights abuses
against Uyghur Muslims. Beijing denies any such abuses.
Adidas did not directly mention the issue on Friday, beyond saying its new outlook took into account
the geopolitical situation as well as the impact of prolonged lockdowns in Europe and industry-wide
supply chain challenges. However, it did say its sales jumped 156 percent in greater China in the
first quarter, a year after the coronavirus pandemic hit there. At the end of the first quarter, 89
percent of the company’s stores had reopened around the world.
Puma said last month it expected a consumer backlash against Western brands in China and
congestion at ports to hit its sales, though it gave an upbeat outlook for 2021. Adidas said firstquarter sales rose 20 percent to €5.268 billion ($6.35 billion), ahead of analysts’ average forecast
of €5 billion, while net income from continuing operations jumped to €502 million. The company
stuck to its forecast for 2021 net income from continuing operations to rise to €1.25-1.45 billion.
It has been noted that Adidas will be raising its sales forecast. Discuss the need for
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