adidas AG (OTCQX:ADDYY) sales and profits jogged lower in the second quarter, hampered by supply squeezes and revenue losses in Russia as well as lockdowns in China.
The German sportswear manufacturer also gave lower guidance for the full year, saying currency-neutral revenues is set to grow to high-single-digit rate in 2022 compared to previous outlook of 11%-13% range, reflecting a double-digit decline in Greater China.
Currency-neutral sales increased 4% to €5.6bn, with the company saying it continued to see strong momentum in Western markets.
Currency-neutral revenues in Greater China declined 35% with the firm saying excluding China, revenues in the company’s other markets combined grew 14% during the second quarter.
According to the company, closing stores in Russia dragged down performance in Europe by €100mln.
Adidas said its net income from continuing operations declined to €360mln compared to €387mln in 2021, with the company saying it was supported by a one-time tax benefit of more than €100mln due to the reversal of a prior year provision.
Consequently, basic EPS from continuing operations reached €1.88 compared to the previous year's €1.93 during the quarter.
Adidas shares are down 32% from the beginning of the year, trading at €175.54, down from 52-week highs.