adidas Group reported that second quarter Group sales increased 59% on a currency-neutral basis, driven by the consolidation of the Reebok business segment as well as higher than anticipated double-digit growth of both adidas and TaylorMade-adidas Golf. Sales for the adidas Group excluding Reebok increased 20% on a currency-neutral basis, with double-digit sales increases coming from all regions. In euro terms, Group revenues grew 60% to 2.43 billion ($3.05 bn) in the second quarter of 2006 from 1.52 billion ($1.91 bn) in 2005. Sales for the adidas Group excluding Reebok grew 20% in euro terms to 1.81 billion ($2.28 bn).
For the first half of 2006, Group sales increased 49% on a currency-neutral basis, strongly supported by the first-time consolidation of the Reebok business segment. Sales for the adidas Group excluding Reebok increased 16% on a currency-neutral basis driven by higher sales in all regions. In euro terms, Group revenues grew 53% to 4.887 billion in the first half of 2006 from 3.190 billion in 2005. Sales for the adidas Group excluding Reebok grew 19% in euro terms to 3.800 billion in 2006 from 3.190 billion in the prior year.
“The adidas Group had an outstanding first half of 2006 crowned by our strong showing at the World Cup,” commented adidas AG Chairman and CEO Herbert Hainer. “adidas and TaylorMade-adidas Golfs top-line performance was impressive and Reebok delivered sequential improvement in line with our expectations.”
Brand adidas and TaylorMade-adidas Golf drive first half year sales growth
The adidas segment was the main driver for the Groups organic sales growth in the first half of 2006. Currency-neutral adidas revenues increased 15% during the first six months, positively impacted by the 2006 FIFA World Cup. Increases in nearly all Sport Performance categories as well as double-digit growth in the Sport Heritage and Sport Style divisions also contributed to this growth. The Reebok segment added 1.050 billion to adidas Group sales. At TaylorMade-adidas Golf, currency-neutral revenues increased 28%. This positive performance was driven by strong double-digit growth in nearly all major categories as well as the first-time inclusion of the Greg Norman apparel business. Currency translation effects positively impacted sales in euro terms. adidas sales in euro terms increased 17% to 3.308 billion in the first half of 2006 from 2.816 billion in 2005. TaylorMade-adidas Golf sales in euro terms grew 32% to 464 million in 2006 from 351 million in 2005.
|
|
1st Half Year |
1st Half Year |
Change y-o-y |
Change y-o-y |
|
|
in millions |
in millions |
in % |
in % |
|
|
3,308 |
2,816 |
17 |
15 |
|
|
1,050 |
1,151 |
(9) |
(12) |
|
|
464 |
351 |
32 |
28 |
|
|
4,887 |
3,190 |
53 |
49 |
Group sales by brand in 2006,
“Total” includes HQ/Consolidation
[1]
Including Reebok business segment from February 1, 2006 onwards.
[2]
Figures reflect continuing operations as a result of the divestiture of
the Salomon business segment in 2005.
[3]
Only includes five months of the six-month period in the first half of
2006. The relevant figures for the five-month period of 2005 were not
consolidated within the adidas Group in 2005 and are therefore not included
in the total. Reebok prior year results are based on US-GAAP figures and not
IFRS.
Strong double-digit sales increases in all regions
First half adidas Group sales in Europe grew 27% on a currency-neutral basis, mainly reflecting the first-time consolidation of the Reebok segment as well as increases at brand adidas. This represents an improvement of 28% in euro terms to 2.004 billion in 2006 from 1.569 billion in 2005. In North America, Group sales during the first half increased 99% on a currency-neutral basis, reflecting the first-time consolidation of the Reebok segment as well as double-digit increases at both adidas and TaylorMade-adidas Golf. In euro terms, sales increased 110% to 1.592 billion in 2006 from 757 million in 2005. Sales for the adidas Group in Asia increased 34% on a currency-neutral basis in the first half of 2006, driven by strong double-digit increases at adidas and TaylorMade-adidas Golf as well as the first-time consolidation of the Reebok segment. In euro terms, revenues in Asia grew 36% to 964 million in 2006 from 708 million in 2005. In Latin America, currency-neutral sales increased 62% in the first half of 2006. This development mainly reflects strong increases at brand adidas as well as the first-time consolidation of the Reebok segment. In euro terms, sales grew 78% to 241 million in 2006 from 136 million in 2005. For the adidas Group excluding Reebok, first half currency-neutral sales grew 8% in Europe and 18% in North America. Revenues for the adidas Group excluding Reebok in Asia and Latin America increased 21% and 41%, respectively, on a currency-neutral basis in the first half of 2006.
|
|
1st Half Year |
1st Half Year |
|
|
|
|
|
|
|
|
|
Europe |
2,004 |
1,569 |
28 |
27 |
|
North |
1,592 |
757 |
110 |
99 |
|
Asia |
964 |
708 |
36 |
34 |
|
Latin |
241 |
