Adidas cuts outlook on supply logjam

Sales at Adidas aren't running quite as quick as the firm would like.

On Wednesday (November 10) the sportswear giant cut its outlook for full-year sales and profits.

The German firm also fell short of analyst forecasts over the the latest quarter.

Sales came in at $6.65 billion for the period, just shy of market expectations.

Adidas shares were down around 5% in early trades following the news.

Supply disruptions were one factor in the slowdown.

Key factories in Vietnam were closed for up to 11 weeks due to the global health crisis.

Rival Puma says the resulting supply bottlenecks will last well into next year.

Adidas also faces challenges in China.

Besides health crisis disruptions, it's among the western firms caught up in political tensions there.

Since March its faced a consumer boycott over past statements saying it would not source cotton from Xinjiang.

China is accused of using forced labor in the province, something it strongly denies.

Adidas sales in Greater China fell 15% over the latest quarter.

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