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Adidas sees slump in net profits by 97% as e-commerce fails to plug the gap

If you have been following the news lately, it is known that the world is fighting a global pandemic meaning that every sector of the industry is struggling to do any business right now. Therefore, it is understood that companies will have a slump in their forecasts of profit. As far as the companies and their profits are concerned, we now have a new report from Adidas and the things are not looking great for the footwear brand. It is known that the things being sold are only being done via e-commerce meaning that only deliveries are possible.

It is seen that stores are not open meaning that sale of things that need a physical touch is shut down. This also includes shoes which need to be tried on in order to decide before buying. Now, Adidas has said that they are seeing a 97% slump in their net profits. They have said that “Our focus on accelerating our own-retail and digital business”

Adidas CEO also said that “Our results for the first quarter speak to the serious challenges that the global outbreak of the coronavirus poses even for healthy companies,” It is also dramatic to see the numbers released by Adidas in its earnings call. The company revealed that their net income from continuing operations was €20 million (£17.3 million) down dramatically from €631 million in the same period last year

This means that not only is the net profit from Adidas down dramatically, but it is also possible that the company is making huge losses. However, it is worth noting that the company said that it has seen a growth of 35 per cent in the e-commerce department of the country which is currently the only thing open right now. Adidas also says that it is “making use of the flexibility in its operating cost base but largely refraining from measures that would jeopardize future prospects.”

Sonali Minocha
Sonali Minochahttps://www.ecommercenext.org
Passionate about Innovation and Technology. I love to contribute to high impact projects/ products. I have co-created/contributed to technology solutions touching 100 million ++ humans. I am also fond of e-commerce & PIM solutions. As editor of eCommerceNext, I am bringing news, events, opinions, experts, reviews from the world of e-commerce and PIM Besides technology and innovation, I am usually involved in setting up and running complex operations and human capital systems. I have been grateful to be acknowledged by getting “Great Places to Work – Top 100”, “Great Places to Work – Top 50”, “Great Place to Work – Top 5” awards for my company. I am a people and relationship person and bring in a balance of empathy and realistic solutions. I thrive on building processes and building control systems. I led the team that achieved CMMI Level 3. I have managed large teams and in-turn managed projects worth 15-20 Million (Annually) Want me to cover an interesting story around eCommerce or PIM? Reach me on sonali@ecommercenext.org

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