// Adidas predicts double-digit growth to continue in 2022
// The group has predicted that currency neutral sales will increase between 11-13% year on year in 2022 and has built in “€250m (£208m) of risk” prompted by Russia’s invasion of Ukraine
Adidas expects to take a €250m hit to sales this year due to the suspension of its Russian business following its invasion of Ukraine, however, the sportswear giant still expects double-digit growth to continue in 2022.
Adidas revealed on Monday that it had suspended operations of its stores and website in Russia until further notice.
Adidas said the €250m at risk was about half of the company’s total revenues in the region and represented about 1 percentage point of growth for the total company.
READ MORE:
- Live updates: The retailers pulling out of Russia – from Adidas to John Lewis Partnership
- Can global brands justify still trading in Russia?
Across the Adidas group sales increased by 15.2% year on year, or 16% on a currency neutral basis, to £17.64bn, in the year to 31 December 2021. Operating profit jumped 166.3% to £1.65bn.
Adidas CEO Kasper Rorsted said: “Unfortunately, we release our 2021 results in unsettling times. Our thoughts and prayers are with the Ukrainian people, our teams on the ground and everyone affected by the war.
“We strongly condemn any form of violence and stand in solidarity with all those calling for peace. We also provide immediate humanitarian aid to those in need of support. We will continue to follow the situation closely and take future business decisions and actions as needed, always prioritizing our employee’s safety and support.”
Despite the growth in 2021, Adidas said “challenging conditions” in China, Covid-19 related lockdowns in the Asia Pacific region, and global supply chain disruption reduced its revenue growth by more than £1.25bn during the year.
The group expects sales in China to increase in the “mid-single digits” after a consumer boycott in 2021.
Adidas was targeted during a boycott of Western brands by Chinese consumers who criticised companies for saying they would not source cotton from Xinjiang after reports of human rights abuses against Uyghur Muslims there.
The retailer now expects net income from continuing operations to grow to between £1.5 billion and £1.6 billion in 2022, up from £1.2 billion in 2021.
Click here to sign up to Retail Gazette‘s free daily email newsletter
