German sportswear brand Adidas third quarter inventories decreased 22 per cent. Operating working capital decreased 17 per cent. Average operating working capital as a percentage of sales declined five percentage points to 20.1 per cent.

Revenues grew three per cent in the third quarter. At the same time, sales in Asia-Pacific declined eight per cent, reflecting the impact from the extensive lockdowns in the region. In Greater China, the geo-political situation, resurgence of Covid-related restrictions as well as natural disasters weighed on the company’s top-line performance and led to a revenue decline of 15 per cent. As a percentage of sales, operating overhead expenses decreased 27.2 per cent. In the first nine months of 2021, revenues grew 21 per cent.

Adidas performed well in an environment characterized by severe challenges on both the supply and demand sides. As a consequence of successful product launches it is experiencing strong topline momentum in all markets that operate without major disruption. In total, the challenging market environment in Greater China, extensive Covid-related lockdowns in Asia-Pacific as well as industry-wide supply chain disruptions reduced revenue growth. From a channel perspective, the company’s top-line development was driven by growth in its own direct-to-consumer channel.