BERLIN, May 6 Reuters Adidas lowered expectations for 2022 after a firstquarter slump as renewed COVID19related lockdowns in Greater China continue to hit the German sportswear company.

Firstquarter currencyadjusted sales shrank by 3 worldwide, to 5.3 billion euros 5.58 billion, while profit from continuing operations fell 38, to 310 million euros, it said on Friday.

In Greater China, sales collapsed by 35 in the first quarter; for the year, revenue is expected to fall significantly due to store closures and strong traffic declines.

The company now expects to come in at the lower end of its 2022 forecast for an 1113 increase in currencyneutral sales as well as for net income from continuing operations of between 1.8 and 1.9 billion euros.

Adidas also cut its operating margin forecast, saying it will remain at the previous year39;s level of 9.4 instead of increasing to 11.

In this environment, characterized by severe external challenges, it is imperative to stay focused on our strategic objectives, said Chief Executive Kasper Rorsted.

While we will remain agile, we will not jeopardize our longterm growth opportunity for shortterm profit optimization.

The company expects a return to growth in the second quarter despite the continued sales decline in Greater China and a 200millioneuro negative impact from supply chain constraints.

In the second half of 2022, net sales are expected to grow over 20, driven, among other things, by unconstrained supply, strong momentum…