(Reuters) – German sportswear maker Adidas warned on Wednesday that the suspension of its activities in Russia due to the invasion of Ukraine could have an impact of around 250 million euros on its turnover. business in 2022, as it plans to resume its business in China.
Adidas expects constant currency sales growth of 11% to 13% for 2022, including the risk related to the impact on its businesses in Russia and Ukraine, on the back of a two-fold increase figures expected in the “Greater China” region where the group suffered from a boycott by Chinese consumers last year.
Adidas announced on Monday that it is suspending operations of its stores and e-commerce site in Russia until further notice.
The group has some 500 stores in Russia, a quarter of the total.
The 250 million euros at stake represents around half of the group’s total sales in the region, he said.
Adidas expects net profit from continuing operations to increase to between 1.8 billion and 1.9 billion in 2022, from 1.492 billion in 2021.
Adidas’ constant currency sales fell 3% in the fourth quarter to 5.137 billion euros, hurt by a 24% drop in Greater China.
The sports equipment manufacturer’s Chinese customers have criticized it, like other Western brands, for statements concerning the supply of cotton in the province of Xinjiang, concerned by allegations of human rights violations against of the Muslim Uyghur minority.
(Report Emma Thomasson, French version Diana Mandiá, edited by Blandine Hénault)
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