Adidas Group revenues grew 11 percent on a currency-neutral basis in the fourth quarter of 2011, with currency-neutral sales in the combined Adidas/Reebok Wholesale and Retail segments increasing 9 percent and 18 percent, respectively. Sales for Other Businesses, which includes TaylorMade-Adidas Golf, Rockport and Reebok Hockey/CCM, grew 12 percent on a currency-neutral basis.
The company reported that currency-neutral revenues in Western Europe increased 13 percent in the fourth quarter, supported by high-teens growth at Adidas. In European Emerging Markets, currency-neutral sales were up 20 percent as a result of double-digit revenue growth at both Adidas and Reebok. Group sales in North America grew 19 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 Performance. Currency-neutral revenues in Other Asian Markets grew 2 percent, due to increases at all brands except Reebok. In Latin America, Adidas Group sales declined 1 percent on a currency-neutral basis as growth at Adidas was more than offset by sales declines at Reebok. In contrast to the previous quarter, currency translation effects had no material impact on sales in euro terms. Group revenues grew 11 percent to €3.26 billion ($4.40 bn) in the fourth quarter of 2011 from €2.93 billion ($3.99 bn) in 2010.
The Group’s gross margin decreased 80 basis points to 45.6 percent of sales in the fourth quarter as a more favorable product and regional sales mix could only partly offset a significant increase in input costs. Other operating expenses as a percentage of sales decreased 20 basis points to 46.9 percent of sales, primarily due to lower marketing investments as a percentage of sales. Other operating income increased to €48 million ($65 mm) compared to €19 million ($26 mm) in the prior year, reflecting higher income from insurance compensation. As a result, operating profit grew 34 percent to €38 million ($51 mm) compared to €28 million ($38 mm) in 2010. Group net income attributable to shareholders increased to €18 million ($24 mm), or €0.09 (12 cents) per share, in Q4, compared to €7 million ($10 mm), or €0.03 (4 cents) per share, in the prior-year quarter.
Full Year Results
For the full year, Adidas Group revenues grew 13 percent on a currency-neutral basis, as a result of double-digit sales increases in Wholesale, Retail and Other Businesses. The results reportedly exceeded initial management expectations of a mid- to high-single-digit Group sales increase. Currency translation effects had a negative impact on sales in euro terms. Group revenues grew 11 percent to €13.3 billion ($17.7 bn) in 2011 from €12.0 billion ($16.7 bn) in 2010.
Full year currency-neutral Wholesale revenues increased 11 percent, mainly due to double-digit sales growth at Adidas. Currency-neutral Retail sales increased 20 percent, driven by 14 percent comparable store sales growth. Revenues in Other Businesses were up 13 percent on a currency-neutral basis, mainly driven by double-digit sales increases at TaylorMade-Adidas Golf. Currency translation effects had a negative impact on segmental sales in euro terms.
|
|
2011 |
2010 |
Change y-o-y in euro terms |
Change y-o-y currency-neutral |
|
|
€ in millions |
€ in millions |
in % |
in % |
|
Wholesale |
8,971 |
8,181 |
10 |
11 |
|
Retail |
2,793 |
2,389 |
17 |
20 |
|
Other Businesses |
1,580 |
1,420 |
11 |
13 |
|
Total1) |
13,344 |
11,990 |
11 |
13 |
Revenues in Western Europe increased 10 percent on a currency-neutral basis for the full year, primarily as a result of strong sales growth in Germany, France, Spain and Italy. In European Emerging Markets, Group sales increased 22 percent for the year 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 15 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 23 percent on a currency-neutral basis. Currency-neutral revenues in Other Asian Markets grew 5 percent due to increases in most markets, in particular South Korea. In Latin America, sales grew 10 percent on a currency-neutral basis, with strong double-digit increases in most of the region’s major markets. Currency translation effects had a mixed impact on regional sales in euro terms.
|
|
2011 |
2010 |
Change y-o-y |
Change y-o-y currency-neutral |
|
|
€ in millions |
€ in millions |
in % |
in % |
|
Western Europe |
3,922 |
3,543 |
11 |
10 |
|
European Emerging Markets |
1,597 |
1,385 |
15 |
22 |
|
North America |
3,102 |
2,805 |
