For immediate release
Herzogenaurach, May 5, 2011
First Quarter 2011 Results:
Group sales increase 18% on a currency-neutral basis
Net income attributable to shareholders up 25% to € 209 million adidas Group increases full year sales guidance
• Comparable Retail store sales grow 17% currency-neutral • adidas and Reebok sales increase 18% and 24% respectively • Gross margin almost unchanged at 48.5% despite higher input costs • Operating margin up on a comparable basis
• Net borrowings down 33% to € 914 million at quarter-end
adidas Group currency-neutral sales increase 18% in the first quarter of 2011 In the first quarter of 2011, Group revenues grew 18% on a currency-neutral basis as a result of double-digit sales increases in Wholesale, Retail and Other Businesses. Currency translation effects had a positive impact on sales in euro terms. Group revenues grew 22% to € 3.273 billion in the first quarter of 2011 from € 2.674 billion in 2010.
“We are off to a powerful start in 2011 with record first quarter results,” commented Herbert Hainer, adidas Group CEO. “Strong double-digit growth in key markets such as North America, Greater China and Russia and the successful introduction of new products and campaigns by adidas, Reebok and TaylorMade underline the strength and desirability of our Group brands all around the globe.”
Wholesale and Retail segments drive strong sales growth in Q1 In the first quarter of 2011, currency-neutral Wholesale revenues increased 18% due to double-digit sales growth at both adidas and Reebok. Currency-neutral Retail sales increased 22% versus the prior year, mainly as a result of double-digit growth of comparable store sales. Revenues in Other Businesses were up 14% on a currency-neutral basis, driven by double-digit sales increases at TaylorMade-adidas Golf.
Currency translation effects had a positive impact on segmental sales in euro terms. Wholesale revenues increased 22% to € 2.320 billion in the first quarter of 2011 from € 1.898 billion in 2010. Retail sales rose 26% to € 577 million versus € 459 million in the prior year. Sales in Other Businesses grew 19% to € 376 million in the first quarter of 2011 (2010: € 316 million).
2010Change y-o-y in euro termsChange y-o-y currency-neutral€ in millions€ in millionsin %in %Wholesale2,3201,8982218Retail5774592622Other Businesses3763161914Total1)3,2732,6742218First quarter net sales development by segment 1) Including HQ/Consolidation.
Currency-neutral sales increase in all regions
In the first quarter of 2011, currency-neutral adidas Group sales grew in all regions. Revenues in Western Europe increased 14% on a currency-neutral basis, primarily as a result of double-digit sales growth in Germany, France and Italy. In European Emerging Markets, Group sales increased 26% 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 26% on a currency-neutral basis driven by a 30% sales increase for adidas and 22% sales growth for Reebok. Sales in Greater China increased 36% on a currency-neutral basis. Currency-neutral revenues in Other Asian Markets grew 7% due to increases in most markets, in particular South Korea. In Latin America, sales grew 15% on a currency-neutral basis, with double-digit increases in most of the region’s major markets. Currency translation effects had a positive impact on regional sales in euro terms.
in euro termsChange y-o-y currency-neutral€ in millions€ in millionsin %in %Western Europe1,0949451614European Emerging Markets3702902826North America7515852826Greater China2841984336Other Asian Markets446384167Latin America3282712115Total1)3,2732,6742218First quarter net sales development by region...
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