Adidas Is In Trouble, And The Inventory Is Overloaded.

In the twinkling of an eye, 2020 of the past 1/3, the global epidemic continues to heat up, especially in Europe and the United States has become the hardest hit. The fiercely new crown virus has made a hit on all walks of life. Many enterprises are losing heavy losses and even being crushed down by the epidemic. Even the sports giant Adidas is not immune.

Adidas said that due to the impact of the epidemic, the company closed 70% of the world's stores, resulting in the first quarter of this year's revenue of 47, 5 billion 300 million euros, down 19% compared with the same period last year, and excluding high operating costs, Adidas's net income of 26 million euros, compared with the same period last year, a 96% reduction. This has caused great losses to Adidas, but at present, the epidemic situation abroad has not been controlled, and the days of stores resumption are far from being expected. Adidas is now in an unprecedented predicament.

In the middle of 3, ADI said that the impact of the new crown epidemic on the Chinese market was very serious. Since the outbreak of the epidemic during the Spring Festival, the income of ADI in Greater China has dropped by 85% compared with the same period last year. Fortunately, the recent domestic epidemic is coming to the spring. Most stores in China have resumed normal business. However, the sale of the epidemic has not completely subsided, and sales will not be fully recovered in a short time. The first quarter market has shrunk to 58%, sales have decreased by at least 800 million euros, and operating profits have been reduced by at least 400 million euros.

Although Adidas has received 3 billion euros of credit assistance, so that ADI is not overburdened and facing a crisis of collapse, but the company still has more than 1 billion 600 million euros of inventory, eager to sell. During the Spring Festival, the Chinese market should have a relatively large income. In order to welcome the gold shopping season of the Spring Festival, Adidas prepared a lot of stock before the Spring Festival, but the serious epidemic caused the offline stores to have to shut down, which led to the backlog of the goods.

Therefore, in order to clear up the backlog of stocks, ADI can only turn to online sales, so as to ease the crisis facing offline stores. At present, ADI's self dealers and its dealers' inventory is around 1 billion 600 million euros, and the problem of overstock is serious, which may take up to a year to clean up inventory. Fortunately, however, the outbreak of the current electricity supplier industry is booming, from the 3.8 women's day shopping season so far, ADI in the past two months has launched a number of large-scale discount activities, some products half off and other crazy discount also attracted many consumers to pay.

Although ADI is currently facing a very difficult period, its CEO Casper Rost is optimistic about ADI's future development prospects. He said consumers are more eager to healthy life after the outbreak. They hope to shape better body shape and maintain health through sports. Therefore, from the long-term development perspective, sports brand will have a bright future in the future.