Consolidated net sales for the adidas-Salomon Group grew 7% to reach 6.5 billion ($6.8 billion) in 2002. On a currency-neutral basis, sales were up 11%.
While Asia continued to show the largest percentage increases, and Europe maintained its lead in volume, it was the North America business that attracted the most attention as the turn-around talk at adidas America was supported by its first positive year in four years.
The adidas-Salomon Group reported that North American sales for full-year 2002 grew 8% (14% on a currency-neutral basis) to 2.0 billion ($2.05 billion).
TaylorMade-adidas Golf led the charge in NA, growing by 32%. North America brand adidas sales grew 10% on a currency-neutral basis.
On a global basis, the group saw growth across all categories in 2002, but saw increases most significantly in its TaylorMade-adidas Golf division, with TM-aG posting a 30% sales gain (37% on a currency-neutral basis) to 707 million ($741.1 million) in 2002. Worldwide brand adidas sales grew 6% (10% currency-neutral) to 5.1 billion ($5.3 million). Sport Performance footwear technologies like ClimaCool and a3 contributed to the 36% gain in Basketball and 15% in Soccer, with total basketball category sales growing nearly 50% year-over-year. Sport Heritage grew 22%.
Salomon sales declined 4% (-1% currency-neutral) to 684 million in 2002 mainly as a result of poor winter conditions and weak inline skate sales.
Total Group footwear sales grew 8% year-over-year to reach 2.9 billion ($3.0 billion).
Group apparel sales grew 3% to 2.3 billion ($2.4 billion) in 2002, representing 35% of total Group sales. Sport Performance Soccer apparel sales increased 35% and Sport Performance Basketball sales doubled.
Hardware sales grew 11%, primarily from the TaylorMade and Salomon brands, recording the strongest gain among product categories in 2002.
adidas-Salomon sees approximately 5% in top-line growth in 2003 on a currency-neutral basis. Growth is expected to come from all regions, with North America and Asia contributing double-digit currency-neutral sales increases. The Group will focus on building on Salomon in the coming year and expects to see brand adidas growth in the mid single digits.
The company expects to ship 2 million pairs of Clima Cool footwear in 2003, 2 million units of CC apparel and 750,000 of a3 footwear. Sports Heritage footwear is expected to exceed $1 billion in sales and grow double digits in 2003 to roughly 40% of total footwear sales.
Gross margin in 2003 is expected to be between 42% and 43%, reflecting a push to improve its product mix and increase its proportion of adidas own-retail sales to 8% to 10% of total revenues.
The margins in the U.S. are lowest in the Group and the company is “concerned” about the region with mall traffic down and a continued “very promotional” market, but stressed that they do not expect to lose either margin or momentum in the region.
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