Sales up at Adidas Group

Germany
Published:  07 August, 2014

Adidas Group second quarter revenues increased 10% on a currency neutral basis driven by double digit sales in wholesale and retail. However, Group margins decreased 0.9% to 49.2% (2013 50.1%).

Group gross profit increased 1% to €1.704 billion (2013: €1.694 billion) and has been reported in the media as lower than market expectations following the Group's sponsorship of the World Cup earlier this year.

All regions contributed including a 13% growth in Western Europe and a 14% rise in Russia/CIS. North American sales grew 1%. “Overall, we had a good quarter, with increasing momentum across most of our business units and markets as expected. Of particular note, sales increased in all regions during the period,” commented Herbert Hainer, Adidas Group CEO.

Group performance was offset by the TailorMade golf brand where sales declined 18%. Adidas branded sales increased 14% and Reebok grew 9% on a currency neutral basis. The Group’s Rockport brand sales declined 1% on the same currency basis.

Despite the positive results Adidas Group results were lower than analysts expectations. “We take full responsibility to rectify our shortfalls swiftly”, said Hainer.

Earnings per share are €3.10 compared with €3.97 and €4.45 previous quarters.

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