Adidas Group third quarter revenues grew 13 percent on a currency-neutral basis. Currency-neutral sales in the Wholesale and Retail segments increased 10 percent and 21 percent, respectively. Sales for Other Businesses grew 13 percent on a currency-neutral basis.
Currency-neutral revenues in Western Europe increased 10 percent, supported by double-digit growth at adidas and TaylorMade-adidas Golf. In European Emerging Markets, currency-neutral sales were up 22 percent as a result of strong double-digit revenue growth at both adidas and Reebok. Group sales in North America grew 13 percent on a currency-neutral basis, driven by increases at all brands, with particular strength at adidas as well as TaylorMade-adidas Golf. In Greater China, Group sales were up 13 percent on a currency-neutral basis, driven by strong double-digit sales gains at adidas Sport Style. Currency-neutral revenues in Other Asian Markets grew 7 percent, due to increases at all brands. In Latin America, adidas Group sales were up 18 percent on a currency-neutral basis as a result of strong increases at adidas. Similar to the previous quarter, currency translation effects had a negative impact on sales in euro terms. Group revenues grew 8 percent to €3.74 billion ($5.30 bn) in the third quarter of 2011 from €3.47 billion ($4.45 bn) in 2010.
Third quarter EPS increases 14 percent
The Group’s gross margin decreased 30 basis points to 47.1 percent of sales in the third quarter as a larger share of higher-margin Retail sales, a more favorable product and regional sales mix as well as positive hedging effects could only partly offset an increase in input costs. Other operating expenses as a percentage of sales decreased 50 basis points to 36.3 percent of sales, primarily due to lower marketing investments as a percentage of sales. As a result, the Group’s operating margin remained flat at 11.8 percent of sales. Operating profit increased 7 percent to €441 million ($624 mm) compared to €411 million ($530 mm) in 2010. Net financial expenses decreased 25 percent to €23 million, while the Group tax rate improved 270 basis points to 27.3 percent (2010: 30.0 percent). As a result, the Group’s net income attributable to shareholders increased 14 percent to €303 million ($429 mm). Basic and diluted earnings per share for the third quarter increased 14 percent to €1.45 ($4.42).
“Our brands and products are resonating with consumers around the world like never before,” commented Herbert Hainer, adidas Group CEO. “Our record third quarter results were driven by growth in all key geographies, brands and channels. We will finish 2011 clearly exceeding our initial expectations after already surpassing our 2008 record earnings mark after the first nine months. Therefore I can already confirm today: 2011 will be another record year for the adidas Group.”
adidas Group currency-neutral sales up 14 percent in first nine months of 2011
In the first nine months of 2011, Group revenues increased 14 percent on a currency-neutral basis. Currency translation effects had a negative impact on sales in euro terms. Group revenues grew 11 percent to €10.08 billion in the first nine months of 2011 from €9.06 billion in 2010.
First nine months Group sales increase driven by double-digit growth in all segments
The adidas Group’s sales increase in the first nine months of 2011 was driven by double-digit growth in the Wholesale and Retail segments as well as in Other Businesses. Currency-neutral Wholesale revenues increased 12 percent, primarily due to double-digit growth at adidas. Currency-neutral Retail sales increased 21 percent as a result of double-digit adidas and Reebok sales growth. Revenues in Other Businesses increased 13 percent on a currency-neutral basis, mainly due to double-digit sales growth at TaylorMade-adidas Golf. Rockport and Reebok-CCM Hockey sales also grew. Currency translation effects had a negative impact on segmental sales in euro terms.
|
|
Nine Months |
Nine Months |
Change y-o-y in euro terms |
Change y-o-y currency-neutral |
|
|
€ in millions |
€ in millions |
in percent |
in percent |
|
Wholesale |
6,869 |
6,247 |
10 |
12 |
|
Retail |
2,015 |
1,725 |
17 |
21 |
|
Other Businesses |
1,197 |
1,086 |
10 |
13 |
|
Total1) |
10,081 |
9,059 |
11 |
14 |
Nine months net sales development by segment
1) Rounding differences may arise in totals.
Currency-neutral sales increase in all regions
In the first nine months of 2011, currency-neutral adidas Group sales grew in all regions. Revenues in Western Europe increased 10 percent on a currency-neutral basis, primarily as a result of strong sales growth in Germany, France, Italy and Spain. In European Emerging Markets, Group sales increased 23 percent on a currency-neutral basis due to growth in most of the region’s markets, in particular Russia. Sales for the adidas Group in North America grew 14 percent on a currency-neutral basis as a result of double-digit sales increases in both the USA and Canada. Sales in Greater China increased 28 percent on a currency-neutral basis. Currency-neutral revenues in Other Asian Markets grew 7 percent due to increases in most markets, in particular South Korea. In Latin America, sales grew 14 percent on a currency-neutral basis, with strong increases in most of the region’s major markets. Currency translation effects had a mixed impact on regional sales in euro terms.
|
|
Nine Months |
Nine Months |
Change y-o-y in euro terms |
Change y-o-y currency-neutral |
|
|
€ in millions |
€ in millions |
in percent |
in percent |
|
|
3,172 |
