WATCH: Adidas expects supply chain issues to curb sales growth in the first half of the year, particularly in North America via ReutersTV
HERZOGENAURACH, Germany - Adidas expects supply chain issues to curb sales growth in the first half of the year, particularly in North America, where it has doubled its business in the last three years to take market share from bigger rival Nike.
“The volume grew quicker than anticipated and we didn’t respond quickly enough to that demand signal,” Rorsted told a news conference as Adidas presented 2018 results. Shares in the German sportswear brand, up 22 percent in the last year, initially fell more than 5 percent but pared loses to trade down 2.2 percent by 1512 GMT.
Rorsted removed Gil Steyaert as head of the Adidas global supply chain last month after just over a year in the role, and replaced him with Martin Shankland. Until recently, Adidas has only produced small quantities of Yeezy sneakers, but it is now increasing production and Rorsted said it expects to launch about 20-30 Yeezy products a year, with the partnership becoming more commercially relevant.
Sales rose 13 percent in greater China, but fell 6 percent in Europe, where Nike has been growing fast.
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