Apparel and footwear: At what point is missed sales better than excess inventory?

by Harish Iyer In adidas’s recent earnings call, CEO Kasper Rorsted warned that adidas would miss its 2019 growth target because its supply chain was unable to meet the huge demand for its mid-priced apparel, especially in North America. adidas expected this to result in a one to two percentage point drop in its revenue growth, translating to a drop in revenue between €100 and €200 million. For a company operating at almost 52 percent gross margin, that’s not an insignificant amount....