Adidas reported positive performance in the second quarter, fueled by its rebound in the Chinese market and improved inventory management. Revenue in Greater China increased by 16% during this period, signaling a return to growth after several consecutive quarters of decline.
The German sporting-goods company previously released preliminary results, indicating a slight decrease in sales to €5.34 billion ($5.84 billion) for the second quarter. However, the operating margin improved to 3.3%, surpassing the previous quarter’s figures. Notably, the introduction of Yeezy sneakers in May contributed to these favorable results. Adidas severed ties with Yeezy designer Kanye West, also known as Ye, after a series of controversies last year.
Furthermore, the company successfully controlled its inventories, which had posed challenges in the previous year. In the second quarter, inventories increased only slightly and stood at €5.54 billion, a 6% rise adjusted for currency effects.
Buoyed by these positive developments, Adidas adjusted its initial forecast for the year. The company now expects a narrower operating loss of €450 million compared to the initial prediction of a €700 million loss.
During the second quarter, Adidas recorded a net income from continuing operations totaling €96 million. Although this figure is lower than the previous year’s result, it marks a return to profitability following a net loss in the preceding quarter.
