Adidas halts sales in Russia and appoints new China manager

[MUNICH] Adidas halted sales in Russia, following other athletic-wear makers like Puma and Nike in response to the country's invasion of Ukraine.

The German sports company said on Tuesday (Mar 8) it was suspending the operations of its stores and e-commerce site in Russia and stands "in solidarity with those calling for peace."

Adidas, in a separate move, replaced the head of its Chinese operations after the business struggled in the past year amid consumer boycotts and increased competition from local rivals.

The 2 announcements underscore the geopolitical turmoil affecting consumer brands that were already grappling with the pandemic's impact.

Russia's invasion of Ukraine has brought global condemnation, trade restrictions and financial penalties including a move to bar some banks from the Swift financial messaging system. Some of the world's most iconic brands are now departing the country.

Adidas shares rose as much as 3.2 per cent in Frankfurt trading. The company said it will continue to pay employees in Russia and "take future business decisions and action as needed."

It is also donating money and clothing to help people affected by the war in Ukraine and offering support to employees in the region with transportation, housing, clothing, food and psychological assistance.

Adidas already suspended its partnership with the Russian Football Union last week.

In China, meanwhile, the company appointed longtime executive Adrian Siu as head of operations. Siu, 51, has spent 2 decades working for Adidas, most recently as chief executive of the local apparel brand Cosmo Lady.

He will replace Jason Thomas, who has overseen the greater China operations since 2019 and will become senior vice president of global franchise, Adidas said.

Western brands are struggling to hang onto China as a major growth driver after almost a year of consumer boycotts and preferential treatment for homegrown companies including Anta Sports Products and Li Ning. BLOOMBERG