Sporting giants, Adidas was significantly impacted by the COVID-19 pandemic of 2020 as revealed by their 2020 annual report. According to data presented by Safe Betting Sites USA, net sales for the Adidas group fell by 16% in 2020 to just €19.8B compared to €23.6B in 2019.
Adidas Net Sales Dropped Below €20B For First Time In 4 Years
Adidas is the other dominant name in the sporting goods world and has been NIke’s closest competitor for a few decades now. Still, the German sporting giant was not immune to the effects of the pandemic that crippled much of the world in 2020. As a direct result of the pandemic, net sales for the Adidas Group in 2021 fell to under €20B for the first time since 2016.
The Adidas Group recorded net sales amounting to €19.8B in 2020, a 16% drop from 2019’s net sales of €23.6B. This in turn caused the net income for the Adidas Group to drop by a dramatic 65% in 2020 to just €674M compared to €1.9B in 2019.
Adidas Group’s Footwear Category Suffers Sharpest Decline – 17.7%
Out of the Adidas Group’s three main product categories, the footwear category suffered the sharpest decline from 2019. In 2019, the group’s footwear category generated net sales amounting to €13.5B which fell by 17.7% in 2020 to just €11.1B. Footwear production also fell to its lowest figure since 2017after the Group only produced 379M pairs of shoes in 2020.
The apparel category contracted by 14.2% in 2020 when it recorded net sales of €7.7B after recording almost €9B in net sales in 2019. The hardware category also fell by a significant 11.1% with net sales of €1.03B compared to €1.2B in 2019.
Rex Pascual, Sports editor at Safe Betting Sites USA, commented:
“Adidas was enjoying steady growth prior to the unfortunate events of 2020, which impacted the Group’s performance significantly. Despite this, investors should be encouraged with forecasts for the sporting goods industry in the coming years still a very positive one.”
