Adidas Has Supply Chain Problems

Wednesday, 13 March 2019
Adidas today published their annual results. The German company could increase their profits by 20% to 1.7 billion Euro in 2018 and their turnover by 3% to 21.9 billion Euro, but it was an usual message that scared investors.

Adidas announced that in the first half of 2019 supply chain will lower sales as the company will be unable to produce as many shoes and apparel as it could sell.

“While the company is experiencing a strong increase in demand for mid-priced apparel, Adidas will not be able to immediately cover this demand in full due to supply chain shortages,” the company said when publishing its annual results in Herzogenaurach, Germany, without providing further detail on the nature of the supply chain problems.

The problem would be particularly pronounced in the USA.

In the football sector, "there was a strong decline in revenues in the Fourth Quarter of 2018 reflecting the non-recurrence of sales related to the 2018 FIFA World Cup in the prior year’s quarter".

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