Beating the forecast, Adidas recorded a double digit growth on Friday. In China, emboldened by the star power of Lionel Messi and Kanye West, the sales have been reported to shot up.
In March, chief executive Kasper Rorsted told investors that Adidas was experiencing ‘a capacity problem in manufacturing plants’ with demand for mid-priced product in North America growing quicker than expected.
But, the growth in China contributed to the proportion of sales in Asia-Pacific region. Revenue from e-commerce grew by a whopping 40%. This growth compensated for the decline at home and capacity problem in North America. Propelled by this escalation in China, company was able to improve margin and maintain their 2020 target. Today, their stock rose to a record 7.5% in Frankfurt.