“adidas performed well in an environment characterized by severe challenges on both the supply and demand side. As a consequence of successful product launches, we are experiencing strong top-line momentum in all markets that operate without major disruption. Double-digit growth in our direct-to-consumer businesses in EMEA, North America and Latin America is a testament to the strong consumer demand for our products. At the same time, we are navigating through the current worldwide supply chain constraints. Despite all challenges, we are on track to delivering a successful first year within our new strategic cycle”, commented Kasper Rorsted, adidas CEO.

Third Quarter Results

In the third quarter of 2021, adidas’ currency-neutral revenue increased by 3%. In euro terms, revenue grew by 3% in this period, reaching 5.72 billion euros, as compared to the same period of last year (2020: 5.56 billion euros). Direct-to-consumer currency-neutral sales grew by 5% and e-commerce revenue was up by 8%, as full-price increased significantly.

On a comparable basis to the third quarter of 2020, revenue in both EMEA and North America increased by 9% currency-neutral during the third quarter of 2021, despite the negative impact from ongoing industry-wide shipping and handling constraints. Latin America registered revenue growth of 55% in this period. On the other hand, Asia-Pacific reported a decline in sales of 8%, which reflects the effect of extensive lockdowns in the region. In Greater China, revenue dropped by 15% due to the geopolitical situation, the resurgence of Covid-19 related restrictions as well as natural disasters.

In the third quarter of the current year, gross margin declined by 0.2 percentage points to 50.1%, as compared to 50.3% in the same period of the prior year, being negatively influenced by currency fluctuations and supply chain costs.

The company’s net income from continuing operations totalled 479 million euros in the third quarter of 2021, as compared to 535 million euros in the same quarter of 2020.

Nine Months Results

In the first nine months of 2021, revenue increased by 24% on a currency-neutral basis, driven by strong double-digit growth in all markets. In euros terms, revenue rose by 21%, reaching 16.1 billion euros.

The company’s gross margin grew 0.9 percentage points to 51.2% in the first nine months of this year, as compared to the same period of 2020. Net income from continuing operations amounted to 1.37 billion euros, as compared to net income of 318 million euros in the first nine months of the prior year.

Full-Year Outlook

For the fiscal year of 2021, adidas continues to expect currency-neutral revenue to increase by a rate of up to 20%, but anticipates that growth will come in at the lower end of this range “due to the longer-than-expected sourcing disruptions as well as the challenging market environment in China”.