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China and Russia Headwinds Weigh on Adidas’ Q2 Earnings

Adidas is still seeing headwinds due to lockdowns in China and the closure of its business in Russia.

The German brand on Thursday reported that currency-adjusted sales in Q2 were up by 4%, though net income from continuing operations declined to 360 million (or $367 million). Operating profit fell to 392 million ($398 million) from 543 million ($553 million) in 2021.

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Adidas shares were up more than 2% on Thursday morning.

Adidas CEO Kasper Rorsted said in a statement that the macro-economic environment in China has hindered the company’s recovery in that market. Just last week, Adidas cut its outlook for 2022, citing a slower recovery in China due to persisting Covid-19 restrictions. The company said it expects revenues in Greater China to decline at a double-digit rate through 2022.