Growing demand for Adidas products has left the company scrambling to address its supply chain troubles. The sportswear giant is turning to air freight to help boost revenue growth that was affected by product shortages. The shortage in supply reportedly comes from an increase in demand for mid-priced apparel, which the company has not been able to cover in full.
Aircargo News reports that Adidas warned investors that it will use extra air freight this year, potentially effecting profit margins for the remainder of the year. The company went on to say that cots are expected to be "substantial" during the second and third quarter.
Meanwhile, Adidas plans to secure extra supply chain capacity from suppliers and expects to solve any issues by the end of the year. The shortage is mainly located in North America, Aircargo News reports.