Adidas Marketing Plan

Only available on StudyMode
  • Download(s) : 168
  • Published : May 20, 2012
Open Document
Text Preview
For immediate release

Herzogenaurach, May 3, 2012

First Quarter 2012 Results: Group sales increase 14% on a currency-neutral basis Net income attributable to shareholders up 38% to € 289 million adidas Group increases full year guidance • • • • • Comparable Retail store sales grow 9% currency-neutral TaylorMade-adidas Golf sales increase 32% currency-neutral Operating margin up 1.1 percentage points despite gross margin decline Net borrowings down 30% to € 640 million at quarter-end Inventory growth moderates to 13% currency-neutral

adidas Group currency-neutral sales increase 14% in the first quarter of 2012 In the first quarter of 2012, Group revenues increased 14% on a currencyneutral 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 17% to € 3.824 billion in the first quarter of 2012 from € 3.273 billion in 2011. “We are off to a fast start in 2012 and there is still plenty to come as adidas takes centre-stage at the UEFA EURO 2012 and the London 2012 Olympics,” commented Herbert Hainer, adidas Group CEO. “We have worked hard to keep inventories at industry-low levels. With the backdrop of clean markets, you will see us push forward with a whole host of new innovative product and brand experiences that will continue to excite consumers and customers around the world.” Group sales increase driven by double-digit sales growth in all segments In the first quarter of 2012, currency-neutral Wholesale revenues increased 10% due to double-digit sales growth at adidas. Currency-neutral Retail sales increased 16% versus the prior year, driven by 9% comparable store sales growth. Revenues in Other Businesses were up 32% on a currency-neutral basis, driven by strong double-digit sales increases at TaylorMade-adidas Golf and Reebok-CCM Hockey. Currency translation effects had a positive impact on segmental sales in euro terms. Wholesale revenues increased 13% to € 2.614 billion from € 2.320 billion in 2011. Retail sales rose 20% to € 693 million versus € 577 million in the prior year. Sales in Other Businesses grew 37% to € 517 million (2011: € 376 million). 1

First quarter 2012 € in millions 2,614 693 517 3,824

First quarter 2011 € in millions 2,320 577 376 3,273

Wholesale Retail Other Businesses Total1)

Change y-o-y Change y-o-y in euro terms currencyneutral in % in % 10 13 16 20 32 37 17 14

First quarter net sales development by segment 1) Rounding differences may arise in totals.

Currency-neutral sales increase in all regions In the first quarter of 2012, currency-neutral adidas Group sales grew in all regions. Revenues in Western Europe increased 7% on a currency-neutral basis, primarily as a result of sales growth in the UK, Italy, Poland, Spain and Germany. In European Emerging Markets, Group sales increased 15% on a currency-neutral basis due to double-digit growth in most of the region’s markets. Sales for the adidas Group in North America grew 11% on a currency-neutral basis due to strong increases in the USA. Sales in Greater China increased 26% on a currency-neutral basis. Currency-neutral revenues in Other Asian Markets grew 26%, driven by strong double-digit increases in Japan and South Korea. In Latin America, sales grew 14% on a currencyneutral basis, with double-digit increases in most of the region’s major markets. In most regions, currency translation effects had a positive impact on sales in euro terms. First quarter First quarter Change y-o-y in Change y-o-y 2012 2011 euro terms currencyneutral in % in % € in millions € in millions 7 1,094 7 1,174 15 370 16 430 11 751 16 869 26 284 36 385 26 446 33 594 14 328 14 372 3,824 3,273 17 14

Western Europe European Emerging Markets North America Greater China Other Asian Markets Latin America Total1)

First quarter net sales development by region 1) Rounding differences may arise in totals.

Group...
tracking img