Adidas will continue to invest in brick-and-mortar stores, despite booming e-commerce sales during the coronavirus pandemic, the company’s CEO Kasper Rorsted told CNBC.
“I actually think if you asked most people, there’s a big social element about going out and shopping and just seeing and feeling the products again,” Rorsted told CNBC in an interview.
“So, we’ll continue to build stores. We’ll announce that in March of next year, where we’re going to build and create a great store experience,” Rorsted added.
The German designer and manufacturer of shoes, clothing, and accessories saw its online sales surge 93% and 51% in Q2 and Q3, respectively, according to the CNBC report. Adidas (ADDYY) expects online sales of 4 billion euros ($4.9 billion) in FY20 compared to 1 billion euros four years ago, Rorsted said.
The stock price has gained 7.1% YTD and is trading close to its 52-week high. (See ADDYY stock analysis on TipRanks)
Last month, RBC Capital analyst Piral Dadhania downgraded the stock’s rating to Hold from Buy, citing a “less compelling” valuation.
From the rest of the Street, the stock scores a cautiously optimistic Moderate Buy analyst consensus based on 1 Buy and 2 Holds. The average price target of $340.66 implies upside potential of 92.4% to current levels.
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