Adidas 1Q promisingWednesday, 07 May 2008
The adidas and Taylor Made-adidas Golf segments set the pace for the Group’s sales growth in the first quarter of 2008. Currency-neutral adidas segment revenues increased 14% during the first three months, driven by strong performance product sales in nearly all major categories. Currency-neutral sales in the Reebok segment declined 6% in the first quarter of 2008, mainly as a result of Reebok’s repositioning efforts in the USA and the UK. At Taylor Made-adidas Golf its revenues increased with 17%, due to the strong product offering in all major categories, supported by several new product launches.
The gross margin of the adidas Group increased by 2.3 percentage points to a new record level of 49.1% of sales in the first quarter of 2008 (2007: 46.8%), driven by improvements in all brand segments. This is related to an improving product and regional mix, increased own-retail activities as well as favourable currency movements.
For 2008, adidas is expecting to increase its sales at all brands. The target in the Reebok segment was raised in March due to the announced joint venture of Reebok and Vulcabras S.A. in Brazil and Paraguay. Since April 1, 2008, the joint venture distributes Reebok footwear, apparel and accessories in these countries.
adidas AG CEO and Chairman Herbert Hainer commented: “In 2008, we will reach new heights on both the top and bottom line. A summer of excitement is ahead of us. Our brands will be front and centre at the two major sporting events, the UEFA EURO 2008™ and the Olympic Games. Despite a challenging market environment, we are optimistic we will achieve all our targets.”