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Adidas Q2 Revenues Decline 35%

Adidas (ADDYY.PK,ADDDF.PK) reported a 35% decline in second-quarter revenues that amounted to EUR 3.58 billion compared to EUR 5.51 billion last year.

The company incurred a net loss from continuing operations of EUR 306 million versus EUR 462 million last year. On a per share basis, basic loss from continuing operations totaled EUR 1.45, compared to a profit of EUR 2.33 last year.

adidas noted that it reported a material revenue decline in its physical distribution channels during the second quarter of 2020 as the global coronavirus pandemic caused a very large number of store closures as well as a pronounced traffic reduction within the parts of the store fleet that were reopened.

Sales through the company's own e-commerce channel increased 93% during the quarter.

"The past quarter brought unprecedented challenges for our business as large parts of the world were in lockdown. I'm grateful for the relentless and agile efforts of our teams, which enabled us to take the right actions for our consumers, our partners and the company. We addressed the challenges and went after opportunities, as reflected in our e-com business nearly doubling in Q2," said adidas CEO Kasper Rorsted. "We are now seeing the light at the end of the tunnel as the normalization in the physical business continues, with the vast majority of our stores being operational again."

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