Monday December 4, 2023

Adidas Focused On China and E-Commerce

  • Adidas released its Q4 earnings with an operating profit drop of 8%.
  • The company also announced a partnership with Peloton.
Adidas/Design: Alex Brooks
Linkedin
Copy Link
Link Copied
Link Copied

When the fog clears from the pandemic, Adidas’ business operations will have transformed. 

Adidas weathered the pandemic in the last quarter of 2020 with a 53% bump in online sales, and revenue growth in Greater China — trends the company intends to continue in its next chapter.

The Herzogenaurach, Germany-based company also announced a partnership with Peloton, signaling a bet on the home fitness movement.

While the company has reopened over 95% of its stores around the globe, in-person retail will take a backseat to online sales in the company’s growth strategy. 

  • In a five-year plan released alongside its Q4 earnings on Wednesday, Adidas said it plans to double e-commerce sales to between $9.5 billion and $10.7 billion by 2025. The company will invest over $1.2 billion in the digital transition.
  • It also expects sales to grow by 20-30% in Latin America, Asia-Pacific, and Greater China this year.

China in particular will be a focus for the shoe and apparel maker. The company is reorganizing its bookkeeping to separate out the Greater China region from Japan, South Korea, Southeast Asia, and the rest of the region.

Adidas announced last month that it plans to fully divest Reebok, casting off an underperforming brand as it looks toward a new era.

Linkedin
Copy Link
Link Copied
Link Copied

What to Read

Sports Apparel Giants Looking For Holiday Season Turnaround

Once-surging category enters the critical selling period mired in a slump.

Roger Federer-Backed On Is Growing While Others Stumble

Federer backs Swiss athletic shoe and apparel maker On.
Under Armour

Under Armour Is Latest Sportswear Giant To See Revenue Drop

North American sales were weak in the most recent quarter.
Adidas Yeezy shoes on a shelf.

Yeezy Sales Generate $374M In Weak Quarter For Adidas

Adidas reported a decline in operating profits during its most recent quater.
podcast thumbnail mobile
Front Office Sports Today

CFP Selection Turns Heads with Controversial Selection

0:00
0:00

Featured Today

The College Football Playoff is considering rotating TV networks for the national championship game.

CFP Considers Super Bowl-Like Rotation For National Championship Game

Multiple networks could share rights to the championship game, sources told FOS.
Brett Favre
November 27, 2023

Favre Welfare Case Hold-Up? "AG’s Office Has Not Expressed Interest In Pursuing"

The DOJ interviewed Brett Favre in early 2020.
The future of the Pac-12 rests on a court decision.
November 24, 2023

The Pac-12 Plays Its Final Regular-Season Game. Then A Court Decides Its Fate.

The conference's future rests with a court decision.
Lane Kiffin
November 9, 2023

Ole Miss, Lane Kiffin Lawyers Argue for Dismissal of Player Lawsuit

FOS obtained audio of Lane Kiffin's interaction with the player behind lawsuit.

Careers

Powered By

Careers in Sports

Looking for a new job? Check out these featured listings and search for openings all over the world.
Wasserman
Multiple - USA Careers
Live Nation
Multiple - USA Careers
Saco Bay PT
Multiple - USA Careers
The swoosh logo at Nike Eugene.

Nike Misses Revenue Wall Street’s Projections, But Company’s Stock Soar

The company offset the shortfall by exceeding expectations in earnings per share.
June 30, 2023

Nike To Revive Kobe Signature Shoe Line

Late HOFer will again be the center of a signature shoe line.
The PGA Tour and PIF have a self-imposed Dec. 31 deadline to finalize their golf merger.
August 7, 2023

Saudi Arabia’s PIF Aims Higher With Launch of Sports-Focused Investment Company

The PIF has launched a new company, SRJ Sports Investments.
Sponsored

NHL’s Chris Foster on Amplifying Content Distribution With Automation

Learn how the NHL is using WSC Sports to increase fan engagement.
At Dick's Sporting Goods in Fairless Hills, Store Administrative Assistant Christine Vandfermay, of Philadelphia, restocks some Philadelphia Eagles items.
May 23, 2023

Dick’s Sporting Goods Sees Modest Growth, Less Foot Traffic

Dick's Sporting Goods saw a 5.3% increase in net sales in Q1.
Hellen Obiri of Kenya crosses the finish line to win the women's division at the 2023 Boston Marathon.
May 16, 2023

On Wants More Star Power, Visibility for Next Growth Phase

On is looking to grow through tennis and other verticals.
Topgolf
May 11, 2023

Topgolf Callaway Lowers Sales Expectations

Callaway cut its profit forecast for this year.
Endeavor
May 10, 2023

Endeavor Posts Record Quarter Amid UFC-WWE Merger Plans

Endeavor bought WWE in April, it also sold its IMG for $1.25B.