Adidas profits rise despite supply chain shortages
Supply chain shortages in North America have done little to dent sales growth at adidas in the first half. Overall group revenue for the first half rose five per cent to €11.4 billion while operating profit was up 13 per cent to €1.5bn.
In March, the company warned that it would not be able to meet growing demand in the mid-priced market fully because of supply chain shortages.
In its first half results, it said gross margin in North America decreased 0.5 percentage points to 38.8 per cent. “Higher air freight costs to mitigate the supply chain shortages and an unfavourable pricing mix were partly offset by the positive effects from lower sourcing costs as well as a better product and channel mix.”