Adidas business in China returns to growth in May

The world-leading sportswear brand Adidas has seen a strong recovery in the Chinese market in May, as its revenue growth turned positive this month followed the reopening of its stores.

In China, the company's first major market on the road to recovery, all own- and partner-operated stores – more than 12,000 ---have been open since mid-April. Its store traffic remained below the prior year level in May, and its efforts to revitalize retail have led to sequential improvements since stores reopened, said Adidas.

Its traffic shortfall was more than offset by an increase in conversion rates and the rapid growth in the company's e-commerce business.

As a result, overall revenue growth in the country turned positive for the month of May. Following the earlier-than-expected return to growth, Adidas now expects sales for the second quarter in China to be around the prior year-level, according to the company.

Last month, Adidas has pledged to invest more to enhance its supply chain capacity in China, as the company signed an agreement to establish a new automated distribution center in Suzhou for its Asia-Pacific market. Adidas said it is fully confident in the development of the Chinese sports industry, and will continue its investments in China in the future.