August 06, 2020
Although it reported a loss to shareholders of €295 million ($325 mm) against income of €531 million for the second quarter ended Jun. 30 and it expects revenue shortfalls to persist for the rest of the year, Adidas is seeing sequential improvement in all its markets as stores re-open and was optimistic that the worst of the impacts from the pandemic are in the past.
Net income was $40,476,000 in the fiscal first quarter ended June 28 against a loss of $16,615,000 last year as a double-digit gain in the shooting sports segment sent revenues up 4% to $479,140,000 from $459,774,000.
A $174 million non-cash impairment charge for the Jack Wolfskin goodwill and trade name sent the bottom line $167,684,000 into the red from $28,931,000 in prior year income, as revenues dropped 34% to $296,996,000 from $446,708,000 for the second quarter.
Net income jumped 51% to $33,482,000 in the second quarter from $22,223,000 on revenues that were up 7% to $246,938,000 from $231,654,000, bouncing back from a near 30% decline in April as wholesale partners reopened and corporate sales rebounded through May and June.
Canadian Tire’s sporting goods banners saw revenue drop 32% to C$306.7 million ($221.3 mm) from C$452.5 million in the second quarter, including retail sales that were down 25%.
Net income in the second quarter more than quadrupled to $8,710,000 from $1,876,000 on 50% revenue growth to $83,524,000, up from $55,639,000, on strong demand for home recreation and entertainment from consumers stuck at home.