If you previously used a social network to login to WRAL.com, click the “Forgot your password” link to reset your password.
Chatham leaders, schools, residents ready for the population boom that new companies will bring
From Triangle to Triad: Expected Wolfspeed chip plant adds to new 'economic corridor' in NC
Wolfspeed announces $5 billion investment in Chatham County, largest in NC history
Heavy periods of rain could mar weekend outdoor plans
Tracking the tropics: Hurricane Earl could send rip currents to NC this weekend
California avoids outages after day of grid-straining heat
WRAL 5 on Your Side helps Raleigh man save nearly $3K on energy bill, claims he spent 18 hours trying to sort out bill
WRAL 5 On Your Side saves thousands of dollars for Duke Energy customer
On the Record: One-on-one with candidates for the Wake County sheriff's race
MLB set to announce pitch clocks, shift limits for 2023
No evidence of racial slurs at Duke volleyball match, BYU says after investigation
Giglio: Close call should be a wakeup call for the Wolfpack
IRS to refund late-filing penalties for 2019 and 2020 returns
Gov. Roy Cooper, Wolfspeed executives talk new Chatham County plant
Chatham County semiconductor plant would be largest economic investment in NC history
SERGE SCHMEMANN: A woman who embodied the myth of the good monarch
Editorial: Legislators must heed Sec. Kinsley's plea. Expand Medicaid now!
Editorial: If a tax break is good for N.C. corporations, don't treat student loans differently
IRS to refund late-filing penalties for 2019 and 2020 returns
WRAL 5 on Your Side helps Raleigh man save nearly $3K on energy bill, claims he spent 18 hours trying to sort out bill
Halloween is approaching. Here's how you can save on spooky season, despite inflation
Family says bullying contributed to Wendell eighth grader's death by suicide. Here are warning signs to look for.
Get Help: County-by-county guide to mental health and crisis resources in NC
How to make an appointment for an updated COVID booster shot near you
Music, beer, mural celebrate Dix Park at Hopscotch day party
Foodie news: M Sushi opens Cary location
Luke Combs announces Bank of America Stadium show, world tour
Convicted sex offender beaten to death at Central Prison
Runners across country hold memorial run for Memphis jogger who was killed
Published: 2022-05-06 07:57:21 Updated: 2022-05-06 13:00:13
Posted May 6, 2022 7:57 a.m. EDT Updated May 6, 2022 1:00 p.m. EDT
By Anna Cooban, CNN Business
CNN — Adidas on Friday blamed poor sales in China for a sharp drop in first quarter profit.
The German sportswear giant reported net profit of €310 million ($327 million) in the first three months of 2022, down 38% on the same period last year.
The company said the decline was caused by a "challenging market environment" in China, where sales fell 35%, as well as supply chain disruptions.
With no end in sight to Chinese President Xi Jinping's zero-Covid strategy, the outlook for Adidas' business in China — which accounted for about 20% of the company's sales last year — is grim.
Covid lockdowns introduced recently have forced a large number of stores to close. Adidas also noted "strong traffic declines" in parts of the country not directly affected by the restrictions.
"Revenues in Greater China are now expected to decline significantly in 2022," Adidas said in a statement.
Chinese authorities imposed a draconian lockdown in Shanghai — China's financial hub — in late March following a surge in coronavirus cases. Although authorities started to lift some restrictions last month, more than 8 million residents are still banned from leaving their residential compounds.
Restrictions in the capital Beijing have also been tightened in recent days, and are likely to inflict more pain on Western brands at a time when China's economy is already contracting. Last month, the International Monetary Fund said it expected China's GDP to grow 4.4% this year, well below the government's target of about 5.5%.
Adidas posted strong sales in Western markets in the first quarter and said it now expects overall growth this year to come in at the lower end of the 11%-13% range it predicted previously.
Rival Nike reported a 5% drop in its China revenues over the December to February period, compared to the previous year, before the latest lockdowns were introduced.
The-CNN-Wire™ & © 2022 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.
Copyright 2022 by Cable News Network, Inc., a Time Warner Company. All rights reserved.
©2022 Capitol Broadcasting Company, Inc.