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Adidas cuts 2022 forecast due to slower China recovery

By Shubhangi Mathur - Jul 26, 2022, 04:02 PM ET
Last Updated - Jul 18, 2023, 04:41 PM EDT
Adidas cuts 2022 forecast due to slower China recovery

The company expects currency-neutral revenues to grow at a mid-to-high single-digit rate in 2022

Adidas on Tuesday cut its financial forecast for 2022 citing slower recovery in China and other markets.

The company said it “has been experiencing a slower-than-expected recovery in its business in Greater China since the start of the third quarter.”

Due to the continued Covid-19 related restrictions in China, Adidas now expects currency-neutral revenues to grow at a mid-to-high single-digit rate in 2022, compared with previous growth estimates of between 11% to 13%.

Adidas now expects its gross margin to be around 49% in 2022, down from prior guidance of 50.7%.

Picture Credits: Getty Images

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