Adidas revenues slumped by 35% due to lockdowns in China, the sportswear manufacturer said.

Lockdowns in major cities such as Shanghai forced the company to close some of its stores. Due to severe supply chain disruptions, the German sportswear manufacturer lost about $210 million.  

Despite the pessimistic results of the first quarter, Adidas expects its revenues to increase by 11%-13% in 2022 and forecasts net income to reach $1.89-$1.99 billion.

“In this environment, characterized by severe external challenges, it is imperative to stay focused on our strategic objectives,” CEO Kasper Rorsted said. “While we will remain agile, we will not jeopardize our long-term growth opportunity for short-term profit optimization,” he added. Rorsted sees net sales grow by more than 20% in the second half of 2022. Unconstrained supply, strong momentum in Western markets, and major sporting events are expected to boost the company’s performance.