KfW loan repaid: It's cloudy again for Adidas

Adidas hopes to be spared further corona restrictions in the Christmas business. In the summer, the sporting goods manufacturer returned to the black. However, the company still does not trust itself to make a forecast for the year that will continue for a good seven weeks.

The sporting goods manufacturer Adidas made money again in the summer. In view of the second corona wave, however, the group expects setbacks in the Christmas business. "If we were initially back on a growth path at the beginning of the fourth quarter, the current worsening of the pandemic in many regions of the world again requires our patience and support," said CEO Kasper Rorsted.

Adidas 286.70

Between July and the end of September, Adidas benefited thanks to relaxed corona restrictions and strong growth in online business. In addition, the group paid close attention to spending. In the end, the operating result was above management's estimate. However, at 794 million euros, the operating result was just under twelve percent below the previous year's figure. Sales fell in the quarter after adjusting for currency effects by three percent to just under six billion euros, although Internet trading was booming. The bottom line was exactly 100 million euros less at 546 million euros.

For the current fourth quarter, Adidas expects another drop in sales of up to five percent due to the restrictions in retail in many markets. The operating result will be between 100 and 200 million euros from October to December. However, only if a good nine out of ten Adidas stores are open. Looking at the year as a whole, however, Adidas still does not trust itself to make a forecast.

In the spring, Adidas was operating in the red due to corona-related additional costs of 250 million euros, sales had slumped by more than a third due to closed shops and sports facilities as well as canceled sports events.

With the number template, Adidas also announced that it had repaid the billion-dollar Corona aid loan after half a year and obtained a new loan from banks. The group threatened to run out of money in view of the closed shops, which is why it secured a three billion euro syndicated loan with the help of the state bank KfW. The 500 million euros that Adidas had taken from it in July have been repaid, it was now said. At the same time, Adidas obtained a new 1.5 billion euro loan from a dozen banks that runs until 2025.