Sportswear giant Adidas promised to fix supply shortages in North America it missed sales and profit expectations in the second quarter.
Sales were up four per cent to €5.51bn, below average forecasts of €5.54bn and operating profit rose nine per cent to €643m but below expectations of €651m.
Read more: Adidas hikes profit forecast
In March the German company warned issues in the supply chain would affect sales growth in the first half of the year. The shortages will be over by the end of the year and will not impact 2020 figures, the company said.
Supply problems were unrelated to the burgeoning trade war between the US and China. Adidas makes around 25 per cent of its sales in China, which accounts for about 20 per cent of manufacturing.
Quarterly sales were flat in Europe after a three per cent fall in the first quarter. The company said it expected to return to growth in Europe by the end of the year following the launch of new shoe designs.
Adidas said overall sales would increase in the second half and confirmed a full-year outlook for sales growth of five to eight per cent.
Adidas chief executive Kasper Rorsted said: “We delivered another successful quarter. Sales in our strategic growth areas Greater China and e-commerce continued to increase at a double-digit rate – and so did our bottom line.
“We remain confident about the sequential revenue acceleration in the second half of the year and confirm our top-and-bottom line outlook for 2019.”
Main images credit: Getty