Adidas reported that its first-quarter net income attributable to shareholders dropped to 31 million euros or 0.16 euros per share from 632 million euros or 3.18 euros per share in the same quarter last year, APA reports citing Bloomberg.
Net income from continuing operations decreased 97% to 20 million euros from the previous year.
The company's gross margin decreased 4.2 percentage points to 49.3%. It was mainly hurt by a less favorable regional mix due to the overproportionate sales decline in Greater China, negative currency developments as well as costs related to the cancellation of purchase orders in order to adjust the inbound flow of inventories to the current circumstances.
Currency-neutral revenues decreased 19% in the first quarter, reflecting a 20% sales decline at brand adidas, while Reebok sales were down 12%. In euro terms, revenues also decreased 19% to 4.753 billion euros from last year.
The company said it is still not able to provide an outlook for the full year 2020 that includes the coronavirus impact.