Adidas Supplier Data Suggests Dimming Retail Demand — Market Talk

About this update from Lai Yih Footwear Co., Ltd.

Falling revenue for one of Adidas's key Taiwanese suppliers suggests the German retailer is forecasting weakening retail demand over coming months, analysis from Bank of America suggests. Lai Yih, which manufactures footwear for Adidas, had an 18% on-year fall in sales in March, while revenue fell more sharply in the first quarter. The manufacturer is overexposed to Adidas, supplying around 6% of Adidas's products, BofA analysts say. Meanwhile, analysis of Google search trends suggests online interest in Adidas products rose in March, the analysts add. However, queries remain down for the first quarter. Adidas shares slide 1.3%. ([email protected])

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