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        <title><![CDATA[Adidas expects profit rebound as COVID-19 shakes up fashion world]]></title>
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            <media:title type="html">Adidas expects profit rebound as COVID-19 shakes up fashion world</media:title>
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        <content:encoded><![CDATA[<p>Coronavirus-fueled office closures have provided a surprising boost to Adidas, which on Thursday announced it expects to return to profitability in the third quarter as more customers dress down as they work from home.</p><p>The German sportswear giant&#8217;s CEO told reporters that customers in the 18-34 age group say they plan to spend more time working out as a result of the pandemic, and that daily fashion is changing as companies allow employees to work remotely.</p><p>&#8220;The work environment will have changed forever,&#8221; Kasper Rorsted said.</p><p>One of the biggest beneficiaries of the pandemic? Adidas&#8217; affordable Adilette bath sandals — which start at around $20 — and saw sales jump threefold since the beginning of the pandemic in March, the company said.</p><p>The Nike rival <strong>took a significant hit</strong> in the first half of the year as most of its retail stores were closed, and high-profile sporting events like the Olympics and European soccer championships were postponed.</p><p>But Rorsted said the company already returned to growth in its home market Germany last month and it expects a recovery in third-quarter sales assuming more than 90 percent of stores stay open, with the fall compared to 2019 set to be less than 10 percent.</p><p>A second-quarter operating loss of $396 million was bigger than average analyst expectations, while a sales decline of 35 percent to $4.2 billion, beat forecasts.</p><p>Shares in the company, which are down 17 percent this year, were up 4 percent, the biggest German blue-chip gainer.</p><p><em>With Post wires</em></p>]]></content:encoded>
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