Adidas released dismal first-quarter earnings results this week, highlighting the painful effect closing stores due to COVID-19 restrictions has had on their sportswear business.
On Monday, Adidas reported less than 32 million euros in total profit for the first quarter of 2020. That’s an astounding 95 percent decline from their 632 million euro profit in the first quarter of 2019. Overall, sales were down over a billion dollars year-over-year, with a 19 percent drop leading to 4.5 billion euros in Q1 2020.
With COVID-19 restrictions still fully underway across the world, Adidas has closed over 70 percent of their physical stores. The company reported that they expect many of their stores to remain closed for the foreseeable future, and warned that the second quarter could be even more disastrous than the first.
Sportswear competitor Nike is expected to give their fourth-quarter and last earnings report of their fiscal year on May 31, and many are expecting similar numbers to those of Adidas.