Adidas released first-quarter earnings Friday, reporting net income of $605 million with revenue growing 27% for the first three months of the year.
The German sportswear company saw growth in all market segments, including China.
- Footwear sales increased 31%.
- Sales in China grew 156%.
- It’s reopened 89% of its stores worldwide since the pandemic-related closures.
- E-commerce sales rose another 43%, after a 35% uptick in the same quarter last year.
Going forward, adidas expects currency-neutral sales to rise at a “high-teens” rate for the remainder of the year.
In Q2, the company is “forecasting a significant top-line acceleration” with sales expected to increase by around 50%, fueled by “an array of innovative product releases.”
In China, adidas and other international retailers have faced boycotts after taking a stand against the treatment of Muslim Uyghurs in the country’s Xinjiang region.
Adidas stated that it has a “zero tolerance approach” to slavery and human trafficking. The company noted that it has “never manufactured goods in Xinjiang.”
“We are still very confident we will continue to build our position in China, which is the single biggest market for us,” CEO Kasper Rorsted told CNBC.