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Adidas Falls as Production Worries Outweigh Rebound in Sales

  • Shoppers return to brick-and-mortar stores as virus curbs ease
  • Challenges in Asia include China boycott, Vietnam production
Pedestrians walk past an Adidas AG store in Shanghai, China.

Pedestrians walk past an Adidas AG store in Shanghai, China.

Photographer: Qilai Shen/Bloomberg
Updated on

Adidas AG fell the most in four months as investors looked past a modest increase in profit guidance and focused instead on weaker demand in China and factory shutdowns in Vietnam.

While revenue in Europe and North America almost doubled in the second quarter, boosted by the phasing out of pandemic restrictions and a return of major sporting events, sales fell 16% in greater China, where some consumers have boycotted Western brands for taking a stance against forced labor in the Xinjiang region.