adidas-Salomon reported third quarter net sales increased 9% on a currency-neutral basis with improvements coming from all brands and regions. This represents growth of 5.4% in euro terms to €1.95 billion ($2.39 bn) in 2004 from €1.85 billion ($2.09 bn) in the third quarter of 2003. Gross margin improved 2.8 percentage points to 47.8% of sales from 45.0% in the prior year.

Third quarter operating profit grew 15.9% to €313 million ($383 mm) in 2004 from €270 million ($304 mm) in the prior year. Net income was up 19.3% to €179 million ($219 mm)versus €150 million ($169 mm) in 2003. This equates to basic earnings per share of €3.92 ($4.79) and represents an increase of 18.4% versus €3.31 ($3.73) per share in the year-ago period.

Currency-neutral sales for the Group rose 6% in the first nine months of 2004. In euro terms, revenues increased 2.7% to €5.04 billion ($6.20 bn) in 2004 from €4.91 billion ($5.45 bn) in the first nine months of 2003.

“The first nine months of 2004 have been exceptionally successful for adidas-Salomon – financially and operationally,” commented adidas-Salomon Chairman and CEO Herbert Hainer. “We've delivered an impressive turnaround in the key region North America, we are on track with our raised performance targets for the year, and we were the dominant brand at the Olympic Games in Athens and the European Football Championships in Portugal.”

Sales growth at Brand adidas set the pace for Group performance in the first nine months of 2004. Currency-neutral adidas revenues rose 7%. The success of the football category as well as the “Apparel Breakthrough” initiative was the major contributor to this development.

At Salomon, revenues grew by 5% on a currency-neutral basis during the first nine months of 2004, mainly driven by positive developments in the apparel, cycling and nordic categories.

Revenues for TaylorMade-adidas Golf increased 4% on a currency-neutral basis driven by growth in the metalwoods category, in particular relating to the success of the new r7 Quad driver. The putter and apparel categories also reported strong growth.

Currency effects from a strong euro, especially versus the US dollar, negatively impacted sales at all brands in euro terms. As a result, adidas sales in euro terms were up 3.4% to €4.16 billion ($5.11 bn) in the first nine months of 2004 from €4.02 billion ($4.46 bn) in the same period of 2003. Salomon sales in euro terms were up 2.3% to €399 million ($491 mm) in the first nine months of 2004 from €390 million ($433 mm) in the prior year. TaylorMade-adidas Golf sales in euro terms declined 2.1% to €477 million ($587 mm) in 2004 from €487 million ($541 mm) in 2003.





New Page 1


 


Nine months


 2003


Nine months


 2004


Change y-o-y


 in euro terms


Change y-o-y
currency-neutral

 


€  in millions


€  in millions


in %


in %

adidas

4,017

4,155

3

7

Salomon

390

399

2

5

TaylorMade-adidas
Golf

487

477

(2)

4

Total


4,913


5,044


3


6

 


adidas-Salomon sales by brand in 2004, Total
includes HQ/Consolidation

From a regional perspective, Group sales in Europe grew 4% on a currency-neutral basis during the first nine months, driven in particular by solid increases in France, Iberia, the UK and the emerging markets.

In North America, Group sales increased 2% on a currency-neutral basis, mainly due to growth in the Sport Heritage division and Sport Performance apparel categories.

In Asia, currency-neutral sales increased 16% driven by double-digit growth in Japan and China.

In Latin America, currency-neutral sales increased 35% in the first nine months, making it the fastest growing region within the Group. Double-digit sales increases in Argentina, Brazil and Mexico were the main components of this improvement. In euro terms, currency translation effects negatively impacted sales in the first nine months in all regions.

Sales in Europe increased 3% in euro terms to €2.77 billion ($3.40 bn) in the first nine months of 2004 from €2.68 billion ($2.97 bn) in the prior year. In North America, sales in euros declined 7% to €1.16 billion ($1.43 bn) in 2004 from €1.25 billion ($1.39 bn) in 2003. In euro terms, sales in Asia improved 12% to €912 million ($1.12 bn) in 2004 from €817 million ($907 mm) in 2003. In Latin America, sales in euros grew 26% to €164 million ($202 mm) in the first nine months of 2004 from €130 million ($144 mm) in 2003.





New Page 1


 


 


Nine months


 2003


Nine months


 2004


Change y-o-y


in euro terms


Change y-o-y
currency-neutral

 


€  in millions


€  in millions


in %


in %

Europe

2,677

2,767

3

4

North America

1,249

1,161

(7)

2

Asia

817

912

12

16

Latin America

130

164

26

35

Total


4,913

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