BERLIN (Reuters) – Any longer-term collapse of China as a growth market could undermine Adidas sales and profit targets up to 2025, the sports goods company told Handelsblatt business daily on Tuesday.
“If the original assumptions change permanently, we would also have to adjust our targets,” Chief Executive Kasper Rorsted told Handelsblatt business daily.
However, he does not believe that China would ultimately turn away from Western brands.
“Then all companies in the world would have a problem. But I don’t think that’s realistic. China will come back, and then there is a lot of room for growth,” Rorsted said.
He added that Adidas had made a mistake in failing to sufficiently understand consumers in China.
Last month, Adidas cut its 2022 earnings target, citing a slower-than-expected recovery in China from pandemic restrictions.
(Reporting by Alexander Huebner; Writing by Madeline Chambers; Editing by Thomas Escritt)
