By Andrea FiguerasAdidas is investigating potential compliance violations in China after it received an anonymous letter. "Adidas takes allegations of possible compliance violations very seriously and is clearly committed to complying with legal and internal regulations and ethical standards in all markets where we operate," a spokesperson of the German shoe and sportswear major said Monday. The company received the letter on June 7 flagging potential compliance violations in the country and it is currently intensively investigating the matter together with external legal counsel, the spokesperson added. According to the company's 2023 annual report, sales in Greater China increased 8% on a currency-neutral basis to 3.19 billion euros ($3.41 billion). For 2024, Adidas anticipates double-digit growth in underlying sales in Greater China, although it noted that downside risks persist due to weaker-than-expected momentum in the region.

Source: Wall Street Journal June 17, 2024 08:22 UTC