German sports giant Adidas expects to bounce back to profitability in the third quarter after it plunged to a big loss in the second quarter when the majority of its stores were closed due to coronavirus lockdowns.

Adidas expects a material improvement in third-quarter sales assuming there are no new major lockdowns, but still down on 2019 by a mid-to-high single-digit rate.

It sees an operating profit of between €600 million and €700 million in the period. Adidas reported a second-quarter operating loss of €333 million (£301.16 million) worse than the €290 million expected by analysts on sales down 35% to €3.579 billion, ahead of analyst consensus for €3.3 billion.

The brand’s sales were flat for the second quarter in China, where it saw double-digit growth in May and June.

The quarterly loss included coronavirus-related charges of around €250 million, mainly due to an increase in inventory and bad debt allowances, as well as the impairment of retail stores and the trademark of its struggling Reebok brand.