Adidas looks to support supply chain as shipments inch higher in Q1

China 2606 Cons. Discr. - Apparel 374 Coronavirus 432 Indonesia 73 Programmatic 33 Thailand 108 U.S. 4645 Vietnam 288

Adidas net income dropped over 90% in the first quarter compared to a year earlier due to the coronavirus epidemic, CNBC reports. In the April 27 earnings call Adidas CEO, Kasper Rorsted, emphasized the importance of the group’s supply chain, noting “we have a deep responsibility for the extended supply chain to ensure that they will be around when the crisis goes away.” continuing, “We’re prioritizing our supply chain and reallocating inventory to e-commerce.

Panjiva data, retrieved via S&P Global Market Intelligence XpressfeedTM shows that seaborne imports to the U.S. associated with Adidas increased by 12.2% year over year in the first quarter. That was faster than the 0.6% year over year increase seen by all apparel imports. That lines up the firm’s statements that most of the challenge so far has been demand driven. Adidas may show reduced imports in the future if demand does not return to soak up inventory levels.


Chart segments imports of apparel associated with Adidas and the entire sector on a three month year over year basis. Source: Panjiva

Adidas’s supply chain is mostly centered around China, although that may be changing in the aftermath of likely stockpiling and supply chain disruptions caused by tariffs implemented as part of the U.S.-China trade war. Adidas CFO, Harm Ohlmeyer, alluded to this stating, “we had the additional supply chain cost … that we had to bring the product in … not just last year but also this year as well.

U.S. seaborne imports from China linked to Adidas fell by 2.1% year over year in the first quarter. Exporters from Thailand were potential beneficiaries of supply chain diversification, with shipments which rose by 41.5%. Shipments from Indonesia saw a modest 2.1% year over year increase in imported volume, while sourcing from Vietnam fell 29.4% year over year as discussed in Panjiva research of Apr 28.


Chart segments imports of apparel by origin associated with Adidas on a monthly and three month average basis. Source: Panjiva

Replicating this analysis in S&P Global Market Intelligence XpressFeed™

The first query uses a wildcard text search to find companies with Adidas in their name. The second query uses HS codes to identify all apparel imports.

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