Adidas reported it is investigating allegations of corruption in China after receiving an anonymous letter. The Financial Times reported over the weekend that the letter, allegedly written by “employees of Adidas China,” accused several Chinese employees by name.
“We received an anonymous letter indicating potential compliance violations in China,” Adidas said in a statement, adding it was “intensively investigating this matter together with external legal counsel.
“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,“ the company added.
Adidas said it could not provide further information until it completes its investigation.
Shares in Adidas were down about 3.5 percent on Frankfurt’s blue-chip DAX index on Monday.
Over the past 18 months, Adidas has been working to boost sales in China, after losing significant market share to rivals since before the pandemic. In the first quarter, sales grew 1.5 percent on a reported basis (7.8 percent currency-neutral) to €897 million. In 2023, sales increased 0.4 percent (8.2 percent currency-neutral) to €3.2 billion
