t has been noted that Adidas will be raising its sales forecast. Discuss the need for  forecasting accuracy for Adidas.

MARKETING 2018
19th Edition
ISBN:9780357033753
Author:Pride
Publisher:Pride
Chapter9: Reaching Global Markets
Section9.2: Nfl Goes Global: From Soccer To Football?
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German sportswear company Adidas shrugged off Chinese calls in March for a boycott of its 
products and raised its 2021 sales forecast on Friday, saying it expects upcoming sporting events to 
drive strong demand for new products. Adidas said it now sees sales growing at a high-teens 
percentage rate in 2021, compared with a March forecast for mid-to-high teens growth, with a jump 
of around 50 percent expected in the second quarter.
It said the acceleration would be driven by new products such as Ultraboost running shoes that are 
designed to be recycled, as well as big sports events like the European soccer championship and 
the Copa America.
Shares in Adidas, which had fallen in recent weeks on concerns about sales in China, were up 7 
percent at 07:28 GMT, the biggest gain on the German blue-chip index. Shares in rival Puma were 
also up 1.8 percent. “A slight upping of 2021 organic growth guidance suggests that concerns 
around the ... damage to Chinese prospects appear overblown,” said Jefferies analyst James Grzinic.
Western brands including Adidas, Nike and Puma faced online attacks in China in March over past 
statements saying they would not source cotton from Xinjiang after reports of human rights abuses 
against Uyghur Muslims. Beijing denies any such abuses.
Adidas did not directly mention the issue on Friday, beyond saying its new outlook took into account 
the geopolitical situation as well as the impact of prolonged lockdowns in Europe and industry-wide 
supply chain challenges. However, it did say its sales jumped 156 percent in greater China in the 
first quarter, a year after the coronavirus pandemic hit there. At the end of the first quarter, 89 
percent of the company’s stores had reopened around the world.
Puma said last month it expected a consumer backlash against Western brands in China and 
congestion at ports to hit its sales, though it gave an upbeat outlook for 2021. Adidas said firstquarter sales rose 20 percent to €5.268 billion ($6.35 billion), ahead of analysts’ average forecast 
of €5 billion, while net income from continuing operations jumped to €502 million. The company 
stuck to its forecast for 2021 net income from continuing operations to rise to €1.25-1.45 billion.

It has been noted that Adidas will be raising its sales forecast. Discuss the need for 
forecasting accuracy for Adidas. 

Note: Provide at least two application points.

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