Kaycee C. Atienza
Sales Management (2-7-13)
Prof. Lucila Magalong
Adidas was founded in 1948 by Adolf Dassler, following the split of Gebrüder Dassler Schuhfabrik between him and his older brother Rudolf. Rudolf later established Puma, which was the early rival of Adidas. Registered in 1949, Adidas is currently based in Herzogenaurach, Germany, along with Puma. The company's clothing and shoe designs typically feature three parallel bars, and the same motif is incorporated into Adidas's current official logo. The company revenue for 2010 was listed at€11.99 billion. Adidas Group sales increase 8% on a currency-neutral basis
Net income attributable to shareholders up 22% to € 798 million adidas Group to achieve record sales and earnings in 2012 and 2013
Adidas and TaylorMade-Adidas Golf currency-neutral sales up 12% and 21% in first nine months respectively Operating margin grows 0.4 percentage points in first nine months. Gross margin up 0.3 percentage points in Q3 despite increase in input costs. Inventories decline 1% on a currency-neutral basis. Net borrowings decrease 55% to € 337 million at quarter-end
Adidas Group currency-neutral sales up 8% in the first nine months of 2012. In the first nine months of 2012, Group revenues increased 8% on a currency-neutral basis. Currency translation effects had a positive impact on sales in euro terms. Group revenues grew 14% to € 11.514 billion in the first nine months of 2012 from € 10.081 billion in 2011.
First nine months Group sales increase driven by double-digit growth in Retail and Other Businesses.
The Adidas Group’s sales increase in the first nine months of 2012 was primarily due to double-digit growth in Retail as well as in Other Businesses. Currency-neutral Wholesale revenues increased 4% during the period, driven by double-digit sales growth at Adidas. Currency-neutral Retail sales increased 16% versus the prior year as a result of double-digit sales growth at Adidas and Reebok. Comparable store sales grew 9% on a currency-neutral basis. Revenues in Other Businesses increased 20% on a currency-neutral basis, mainly due to strong double-digit sales growth at TaylorMade-adidas Golf and Reebok-CCM Hockey. Currency translation effects had a positive impact on segmental sales in euro terms.
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Financial income increased 25% to € 29 million in the first nine months of 2012 from € 24 million in the prior year, mainly due to an increase in interest income.
Financial expenses declined 13% to € 84 million in the first nine months of 2012 (2011: € 97 million). The decrease in negative exchange rate effects was the main contributor to the decline.
Adidas Group confirms earnings guidance for the full year 2012. The strong performance in the first nine months of 2012 has set the Adidas Group up for another year of record financial results. Compared to the previous guidance, Management has decided to adjust the full year 2012 Adidas Group sales guidance. Management now forecasts Adidas s Group sales to increase at a high-single-digit rate on a currency-neutral basis in 2012 (previously: at a rate approaching 10%). The slight reduction relates to lower sales expectations at Reebok and Rockport as well as negative impacts due to the NHL lockout.
As a result, net income attributable to shareholders is projected to increase at a rate of 15% to 17% to a level between € 770 million and € 785 million. This equates to basic earnings per share between € 3.68 and € 3.75.
We are fully prepared and ready to continue in the same direction and with the same determination in 2013 as we stay focused, simplify to the maximum and implement with...
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