Adidas sales in China jumped by 156% in Q121 amid boycotts against international brands by mainland consumers, according to the company’s press release. All market segments recorded growth, helping the net income to hit 502 million euros in Q1 from 26 million euros in the same period last year.
Adidas sales rose overall by 27% on currency-neutral basis in the first quarter.
North American and EMEA sales grew 8%, while Latin America and Asia-Pacific had 18% and 4% revenue expansion respectively.
Gross margin rose 2.1 percentage points to 51.8% in the first quarter while operating margin surged by 12.3 percentage points to 13.4%.
Adidas expects its currency-neutral sales to rise at high-teens rate in FY21.
The company projects significant top-line growth in Q2, with currency-neutral sales expected to jump by as much as 50%.
Adidas projects FY21 gross margin to be around 52%, up from 50% in FY20
Operating margin in FY21 is projected to be in the range of 9%-10%, up from 4.0% in FY20.
Net income is projected to grow to a range of between 1.25 -1.45 billion euros in FY21, up from 461 million euros in FY20.
Adidas stock is currently gaining. ADS is up 7.96%
