Following the news that Adidas reported a 19% decline in net sales in the first quarter of 2020 and reported a decline in net profits of 97%, Luke Gowland, analyst at GlobalData, a leading data and analytics company, provided a sobering view of company’s current challenges.
“With 70% of its stores closed worldwide, Adidas is reliant on its ecommerce channels. Despite the company’s ecommerce revenues growing by 35% in the first quarter of the year, the channel has not been able to offset revenue lost due to store closures,” said Gowland. “With the pandemic likely to drag on for some time yet, the company is bracing itself for an expected 40% decline in second-quarter sales.”
All told, GlobalData expects COVID-19 will cause global retail spend to fall by $549.7 billion in 2020. That would amoubt to an anticipated fall of 3% in 2020, in comparison to a previously expected rise of 5%, said GlobalData.
