Sports apparel giant Adidas expressed confidence in its outlook Thursday despite a dip in China sales due to a boycott against companies that alleged China has committed human rights abuses against Uyghur Muslims.

The German-based company reported second-quarter earnings that showed an increase in revenue across all markets except Greater China. The company’s second-quarter sales dropped by more than 16% in Greater China.

Adidas reported a 55% increase in revenue across the U.S. and Europe compared to the same time last year. Overall net income was $470 million (397 million euros).

CEO Kasper Rorsted told CNBC’s European “Squawk Box” that he was confident Adidas would recover in the Greater China market amid the boycott of western brands and factory closures due to rising COVID-19 cases.

“We are seeing North America, Latin America, and Europe having a very, very strong growth and we are seeing uncertainty in China, but I am very, very convinced that China will be very, very successful also for this year,” Rorsted said.

Adidas also took a hit in its online revenues with sales falling 14%, as consumers were able to return to in-store shopping following vast shutdowns due to the pandemic.

“Because of geopolitical tensions, we did see an impact particularly in our online business in the second quarter in China, and we think that will over time normalize,” Rorsted added.

Adidas was among the companies in March that faced online attacks from China. The company said it would not source cotton from Xinjiang due to possible genocide against the Uyghur population.

The U.S. placed sanctions on China and has threatened to add more.

As a result of the increased outlook, Adidas expects to see a sales growth of up to 20% for 2021. The company is counting on revenue from future product releases and the return of audiences at live sporting events.

Adidas
An Adidas store is viewed in Manhattan in New York City, July 31, 2014. Getty Images/ Spencer Platt
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