German sportswear maker Adidas AG expects a strong rebound in sales in 2021, particularly in China, the rest of Asia and Latin America. However, the brand expects profits to be trimmed by costs associated with divesting the Reebok brand, says a report by Business of Fashion. The brand’s fourth-quarter sales rose 1 per cent to €5.55 billion ($6.59 billion), while its operating profit slipped slightly to €225 million. Its online sales grew 43 percent during the quarter.
As a part of its new strategy, Adidas will separate its Greater China market from the rest of Asia. It has integrated Europe, Russia and emerging markets into a new Europe, Middle East and Africa (EMEA) region for which it expects sales growth in mid-to high-teens.
The brand expects net income from continuing operating to rise between €1.25 billion and €1.45 billion. However, it expects its operating profit to decline to €250 million while net income is expected to decline to €200 million.
