LONDON — Adidas has increased its outlook for the year, despite a drop in sales in China where some consumers have boycotted the sportwear brand for its stance against alleged human rights abuses.

In its second-quarter earnings report Thursday, Adidas said revenue had picked up everywhere except Greater China, particularly in Europe and the U.S, driving a 55% hike in second-quarter sales from the previous year.

“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,” Kasper Rorsted, CEO of Adidas, told CNBC’s Squawk Box Europe.

Adidas has warned that supply chain constraints caused by the pandemic could cost it as much as €500m in sales by the end of the year. The disruption has meant that the world’s largest sportswear maker was unable to produce enough apparel and shoes to meet demand, its chief financial officer Harm Ohlmeyer told journalists on Thursday. Adidas nonetheless raised its 2021 outlook for the second time this year after sales rose 52 per cent year on year in the second quarter to €5.08bn. The company said that first-half sales excluding Reebok, which it is selling, were slightly above the level in 2019, before the pandemic struck.

Adidas has selected a new leader of its Portland-based North American operation just as the venerable athletic shoe and apparel company seems to have regained some of its mojo from a few years earlier.

Rupert Campbell, a British national who had been running Adidas’ Russia operation, will begin work in Portland in the fourth quarter, the company said. He replaces Zion Armstrong, who took the helm of Adidas North America nearly four years ago.

Adidas and Allbirds traditionally compete in the sneaker market. But the two companies changed all that, partnering on a 12-month project to craft a new approach to sustainable footwear from design to materials to manufacturing to delivery, creating the Futurecraft.Footprint performance running sneaker.

At 2.94kg CO2e per pair, the shoe has the lowest carbon footprint of any performance sneaker ever.

And this isn’t just a concept created in a sample lab, but a full-scale project that takes into account every step in the process. “We knew we wanted to build the lowest carbon footprint running shoe the industry has ever seen,” says Sam Handy, vice president of design for Adidas Running. “We set a goal of doing something never done and very extreme.”