Adidas Q3 FY20 results: sales fall 7% to €5.96 bn

Adidas, a designer and manufacturer of shoes, clothing and accessories, reported 7 per cent sales decline to €5.96 billion in its third quarter (Q3) for fiscal 2020 ended on September 30 compared to sales of €6.41 billion in same period last year. Net income from continuing operation for the reported quarter slipped to €578 million (Q3 FY19: €644 million).

 

“We saw a strong recovery in our business in Q3. Our focus on healthy inventories, profitable sell-through and disciplined sell-in clearly paid off: inventories declined by more than half a billion euros and our full-price share in e-com increased at a double-digit rate,” Kasper Rorsted, Adidas CEO, said in a press release.

 

Gross profit for Q3 FY20 was down to €2.98 billion (€3.33 billion). However, EBITDA remained unchanged at €1.14 billion. Company’s operating profit for the quarter dropped to €794 million (€894 million).

 

Sales of Adidas brand decreased 7 per cent to €5.45 billion (€5.84 billion). While, Reebok brand registered 12 per cent sales decline to €403 million (€460 million).

 

During the third quarter, sales in Europe improved 3 per cent to €1.75 billion (€1.69 billion). However, sales in North America fell 5 per cent to €1.38 billion (€1.46 billion). Asia-Pacific sales decreased 10 per cent to €1.87 billion (€2.0 billion). Sales in Latin America plunged 27 per cent to €296 million (€405 million).

 

“While at the beginning of the quarter we were on track for growth in Q4, a worsening of the pandemic in many regions of the world is again requiring our patience and support. However, this is not taking us by surprise. Thanks to our prudent approach, we are now well-prepared to cope with these short-term uncertainties,” Rorsted said.