Adidas reports UK recovery in 2021 after the pandemic dented 2020 figures
Adidas UK has filed its results for 2021 at Companies House with the business saying that sales rose 23.6% last year to £1.291 billion. That more than made up for the 5.3% decrease it had seen during 2020 as the full force of the pandemic impacted its business.
The performance last year included a sales increase of £207.7 million in wholesale and £13.89 million in its own retail stores, as well as a £24.7 million increase in its e-commerce channel.
The company said those figures represent a return to normal trading levels following the effects of Covid-19 during 2020.
But while it saw an overall improvement, the gross profit margin fell from 23% in 2020 to 21.5% in 2021. That said the operating profit margin was up to 3.2% from 2.6%.
Operating profit rose to £41.9 million from £26.8 million and post-tax profit was £32.28 million, up from £20.42 million.
Business had been very challenging during 2020 and that continued into the first quarter of last year.
But the company said it saw a good recovery in consumer confidence and continued consumer desire for sport-inspired apparel and footwear last year. That meant sales increased for the remaining three quarters to the extent that 2021 saw it generating its largest turnover ever, even in the face of production issues that impacted the second half and the fourth quarter in particular.
It added that 2022 included many challenges but its outlook remains positive and it continues to expect growth, although it has seen over the last few years “that we need to be prepared for changes ahead”.
The UK remains a key market for Adidas and the company is continuing to open stores there. They include a giant new store set to open later next week in the high-profile new Battersea Power Station development.
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