German sports apparel brand adidas AG expects its huge operating margin in China to shrink slightly in the long term, while its small U.S. margin grows markedly in the near term, its new chief executive officer said on Thursday.
Kasper Rorsted, on his first visit to China since taking the helm in September, said adidas’ margin in Greater China of 35 percent last year would “stabilize and slightly decline”. Meanwhile North America, with a margin of 6.3 percent last year from 2.5 percent in 2015, was playing “catch-up”.
“We expect a dramatic improvement in margins in the United States, but we expect over time also a slowdown in the margin development in China,” he said, without detailing specifics.
April 20, 2017 at 10:08PM
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