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Adidas loses €100 mln in 3Q due to suspension of operations in Russia

In the reporting period, net profit of Adidas totaled €66 million against €479 million a year earlier

BERLIN, November 9. /TASS/. Revenues of the German-based multinational sportswear producer Adidas decreased by more than €100 million in the third quarter of this year as a result of the suspension of business in Russia, the company said in a press release on Wednesday.

"In the third quarter, adidas’ currency-neutral revenues increased 4%. While the company experienced high-single-digit top-line growth during the first two months of the period, deteriorating traffic trends in Greater China as well as slowing consumer demand in major Western markets weighed on the revenue development in September," the company said.

"In addition, the company’s decision to suspend its own operations in Russia at the end of Q1 significantly reduced revenues by more than €100 million during the third quarter, particularly impacting the company’s direct-to-consumer (DTC) business," the company added.

In euro terms, the company’s revenues grew 11% to €6.408 billion euros in the third quarter. For reference in the third quarter of 2021, the company’s revenues totaled €5.752 billion.

The sportswear giant’s operating profit reached €564 million, which is less than in 2021 (€672 million).

In the reporting period, net profit of Adidas totaled €66 million against €479 million a year earlier.

"The bottom-line development during the quarter reflects several one-off costs totaling almost €300 million on the net income level. The majority of these costs reflect the company’s decision to wind down its business operations in Russia," the company concluded.

Adidas suspended operations of its website and app in Russia on March 9. Retail stores of the chain were closed on March 14.