Under the impact of the new crown pneumonia epidemic, the performance of international sports brands such as Adi and Nike has entered a "cold winter". Adidas’s financial report released on August 6 showed that its net sales for the second quarter of 2020 fell by 35% to 3.579 billion euros, with a net profit loss of 295 million euros and a profit of 531 million euros in the same period last year.

Nike's situation is even worse. Its revenue in the fourth quarter of fiscal 2020 was US$6.313 billion, a year-on-year decrease of 38.14%; a net profit loss of US$790 million, a year-on-year decrease of 179.88%. It is worth mentioning that in the past 8 years, the company's performance has failed to meet profit expectations only twice. In order to cope with the loss situation and the market downturn, Nike decided to make permanent layoffs at its global headquarters, while vigorously strengthening e-commerce and direct sales.

In addition, under Armour, a professional sports brand, had revenue of US$930 million in the third fiscal quarter of fiscal 2020, a year-on-year decrease of 34.92%; a net profit loss of US$590 million, a year-on-year decrease of 676.34%. The company predicts that revenue may continue to fall by 20%-25% in the second half of 2020, and the decline in the fourth quarter will be even greater.

"As the European and American markets are still unstable, the performance of the Chinese market is more positive, and the layout of sports brands in the Chinese market will increase in the future." Cheng Weixiong, an independent analyst in the footwear industry and general manager of the Shanghai Liangqi brand, reported to the Cailian Press Said, “Consumers’ desire to buy will be more targeted, lifestyles will also be changed, and health awareness will become stronger, which in itself will also drive the development of sports brands. However, it is difficult for international sports brands to reverse their presence in the Chinese market alone. The situation in the global market."

Adidas said in its financial report that sales in the Chinese market in the second quarter were flat year-on-year, and double-digit growth was achieved in May and June. Operating profit is expected to rebound in the third quarter, which will increase by about 1 billion euros from the second quarter.




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