Adidas (Herzogenaurach, Germany) has released its first-quarter reports and revealed a 17 percent rise in net profits. In turn, the company’s shares rose 7 percent Friday morning, May 3. According to CNBC and Reuters, the share price has hit an all-time high.
The company’s CEO Kasper Rorsted cautioned investors that the 4 percent growth rate is a temporary position. The retailer reportedly stated in March that it expected supply chain problems to “curb sales growth in the first half of the year,” especially in the U.S., reports CNBC.
“We’re in a situation where the demand is higher than the supply. We should have managed that better but still, a better situation to be in than the reverse where the supply is bigger than the demand … We will see Europe revert to growth at the end of the year, so we are going to go one or two quarters more with negative or flat growth in Europe, and then of course Europe has to get back to growth,” Rorsted said in an interview with CNBC.