Adidas says worse to come as profits and sales plunge

With 60% of its business currently at a standstill, and more than 70% of its stores closed worldwide, first quarter results were always going to sting for Adidas.

Operating profit fell to around 70 million dollars, well short of the 285 million dollars expected by analysts.

The German sportswear firm says an even deeper hit to second-quarter sales and profits is likely, warning of a possible 40% slide.

It's already lost more than a billion dollars of sales in April.

E-commerce, which last year represented 13% of the total, is growing fast for the brand, particularly in China.

But it's not enough to compensate for the loss of in-store sales.

The company said that as shops reopen in China, customers have been returning but they have not been buying as much as before the crisis.

One bright spot is increasing interest in fitness and health.

It's seen record sales of yoga mats as people exercise at home.

Adidas, which was forced to suspend dividend payments as a condition for a government-backed loan earlier this month, said it would replace that loan with other financial vehicles as soon as possible.

Adidas shares, which have fallen by more than a third since the start of the crisis initially rose on the news but were trading down over a percent in Monday (April 27) afternoon trade.