For the third quarter Adidas’ currency-neutral revenues grew four per cent. Currency-neutral sales in Greater China declined at a strong double-digit rate reflecting the continued widespread Covid-19-related restrictions as well as significant inventory take backs.

Excluding Greater China, currency-neutral revenues in the company’s other markets combined continued to grow at a double-digit rate during the quarter. In euro terms, the company’s sales increased 11 per cent. The gross margin declined one percentage point to a level of 49 per cent and operating margin reached eight per cent. Non-recurring costs related to accelerated cash pooling in high inflationary countries, a recently settled legal dispute as well as higher provisions for customs-related risks also had an adverse effect on the company’s gross profit, operating overheads as well as financial and tax expenses in the quarter.

Adidas now expects currency-neutral revenues for the total company to grow at a mid-single-digit rate in 2022, reflecting double-digit revenue growth during the fourth quarter. This growth will be driven by Adidas’ strong product pipeline, support from the Fifa world cup 2022 as well as easier prior year comparables. The company’s gross margin is now expected to be around 47 per cent in 2022. Consequently, the operating margin is now forecasted to be around four per cent.