According to SPARK-Interfax, the German manufacturer of sports clothing and footwear Adidas, according to the 2017 results, managed to reduce the net loss in Russia by 2,2 times to 1,03 billion rubles from 2,2 billion rubles in 2016, Interfax.ru reports.
The company actively closed stores in Russia; in 2017, 180 stores were closed in Russia. This process was continued in the 2018 year. In the first quarter of this year, the retailer closed another 93 retail outlets in the country.
For the first time in Russia, Adidas recorded a loss in the 2014 year, and in the 2015 year it increased sharply (to 1,8 billion rubles from 119,6 million rubles). Last year, Adidas LLC revenue decreased by 14,1% to 40,6 billion rubles (in 2016 there was an increase of 1,1%), gross profit fell by 3,9% to 25,8 billion rubles.
Due to the reduction in commercial expenses last year (by 7,6%, to 25,7 billion rubles), the company managed to end the 2017 year with a profit from sales of 132,3 million rubles (a year earlier there was a loss of 922 million rubles). According to company forecasts, in 2018, Adidas sales in Russia and the CIS (excluding exchange rate fluctuations) will remain at the 2017 level of the year.
In Q1, Adidas revenue in the region continued to decline, decreasing by 25,5%, to 119 million euros. Excluding exchange rate differences, Adidas LLC revenue decreased by 16,4%.