Adidas slashed its 2022 outlook for the Greater China region and lowered its expectations for the whole company on Tuesday amid continued COVID-19 restrictions and a slow recovery in the country.
Revenues for the year are now expected to grow in the mid- to high-single-digit range, down from initial projections for double-digit growth. The Greater China region was expected to be flat year over year and could now decline by double digits, according to a company press release.
The underperformance had knock-on effects across the company’s metrics for the year, with Adidas lowering gross margin expectations to 49% (from 50.7%), operating margin to 7% (from 9.4%) and net income to 1.3 billion euros ($1.32 billion) from a previous range of 1.8 billion euros to 1.9 billion euros.
Source: Retail Dive
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