Sporting goods maker Adidas is becoming more cautious due to ongoing supply chain issues and a more challenging market environment in China.

Although the group confirmed its forecast for the year on Wednesday, it is now assuming that it will reach the lower end of the expected earnings range.

Adidas had only slightly increased its outlook in the summer.

For the shares of the competitor Puma, the trading platform Tradegate fell by a good one percent in the morning compared to the Xetra close.

In terms of the operating margin, Adidas had so far forecast 9.5 to 10 percent for 2021 and 1.4 to 1.5 billion euros for profits from continuing operations. The gross margin should be between 50.5 and 51 percent, as announced by the company in Herzogenaurach. That is below the previously communicated forecast of around 52 percent. Sales should continue to grow by up to 20 percent after adjusting for currency effects.

Revenue growth weakened in the third quarter.

Revenues rose according to the information, both in euros and currency-adjusted by three percent to 5.75 billion euros.

The persistently problematic environment in China, corona-related lockdowns in the Asia-Pacific region and supply chain problems have dampened sales growth by 600 million euros.

The growth drivers were the European region (EMEA) and North America, each of which increased by around 9 percent after adjusting for currency effects.

Boycott calls in spring

In contrast, sales in the important Chinese market fell by around 15 percent after adjusting for currency effects.

The geopolitical tensions would have persisted here.

Because of upset between China and the western world, among other things on the subject of human rights, there were calls for a boycott against western brands in the spring.

Renewed corona-related restrictions and natural disasters also had a negative impact on development.

Due to the higher procurement and logistics costs, the operating result fell from 735 million in the previous year to 672 million euros, the corresponding margin fell to 11.7 percent.

The profit from continuing operations decreased from 535 million to 479 million euros.

After minorities, however, Adidas earned significantly more net, which can be attributed to write-ups at the US brand Reebok, which is about to be sold.

The sale for up to 2.1 billion euros to the Authentic Brands Group should be completed in the first quarter, then the majority of the purchase price will also flow.

After nine months, Adidas has so far achieved an operating margin of 11.9 percent and a profit from continuing operations of 1.37 billion euros.

Traditionally, the fourth quarter is one of the weakest earnings for the Herzogenaurach-based company.

Currency-adjusted sales growth at the end of September was 24 percent.