Adidas full year results exceed targets

Worldwide
Published:  04 March, 2016

Revenues for the sportswear specialist were up 10% for the full year 2015 on a currency-neutral basis, with increased sales in Western Europe, North America and China.

Adidas Group’s revenues increased 16% to just under €17 billion in 2015 from around €14.5 billion in the previous year, with currency translation effects having a positive impact on sales in euro terms.

On a currency-neutral basis, revenues for the Group increased 17% in Western Europe, driven by double-digit sales growth in the UK, Italy, France and Spain. Sales in North America and China were up 5% and 18%, respectively, but down 11% in Russia/CIS and remained stable in Japan. In Latin America, revenues grew 12%, driven by double-digit growth in Argentina, Mexico, Chile, Peru and Colombia. Revenues in MEAA were up 14% for the period; growth in South Korea, the United Arab Emirates, Turkey, Israel and Australia.

“2015 was a very successful year for the adidas Group. We reached all of our major financial goals and exceeded our initial top- and bottom-line targets,” said Herbert Hainer, CEO, Adidas Group.

Total revenue for the Adidas brand was up 12% for the full year, and up 6% for Reebok, on a currency-neutral basis. However, revenues at TaylorMade-Adidas Golf, which manufactures golf clubs, bags and accessories, decreased 13%, due to sales declines in all markets except Latin America and MEAA.

Gross profit for the Group, which ranked 5th in the 2016 global sustainability ranking, increased 18% to just over €8.1 billion, compared with around €6.9 billion in the prior year. Read more on the ‘Global 100’ sustainability ranking here.

For the year ahead, Adidas Group sales are expected to increase at a rate between 10% and 12% on a currency-neutral. The positive sales development is to be supported by rising consumer spending and the development of new and innovative products, together with increased brand-building activities.

Costs for the Group’s Asian-dominated sourcing are projected to increase in 2016 as a result of less favourable U.S dollar hedging rates and rising labour expenditures

 “2016 will be another successful stage in our race to becoming the best sports company in the world and achieving the Group’s long-term financial ambition. Our brands are benefiting from the ever-increasing relevance of sport in the lives of people around the globe and our products are in high demand with consumers in every part of the world”, added Hainer.

In November 2015, the company launched Futurecraft Leather, a completely seamless shoe that enables flex, support and comfort made from one single piece of leather. Read more here.

Herbert Hainer, CEO, Adidas Group
comments powered by Disqus