In 2018, Adidas says it has delivered another year of “significant top-line growth” with currency-neutral revenues up +8%, driven by a +9% improvement at brand Adidas, while Reebok brand sales declined -3% year-on-year. According to the manufacturer, the Group’s top line increase was largely driven by double-digit improvements in direct-to-consumer revenues with particularly strong support from e-commerce, where revenues grew +36%. The Group’s overall revenues were up +3% to €21.9 billion in the year (2017: €21.2 billion), “reflecting significant negative currency translation effects”. Gross margin increased 1.4 percentage points to 51.8% (2017: 50.4%), attributed to the positive effects from a better pricing, channel and product mix as well as lower input costs. Operating profit grew +14% in 2018 to €2.4 billion (2017: €2.1 billion), representing an operating margin increase of 1.1 percentage points to 10.8% (2017: 9.8%). Net income from continuing operations grew +20% to €1.709 billion (2017: €1.430 billion). 

Geographically, the combined sales of the Adidas and Reebok brands continued to expand at strong double-digit rates in the core regions of North America (+15%) and Asia-Pacific (+15%), the latter driven by a +23% increase in Greater China. Currency-neutral revenues in Latin America were up +6% and sales in Russia/CIS increased +1%. Sales in Europe are said to have remained flat compared to the prior year level.

“Record sales, the highest margin in our history, strong net income improvements; 2018 was another successful year for our company”, said Kasper Rorsted, CEO, Adidas. “We have made great strides toward and are confirming our 2020 financial ambition.” In its outlook for 2019, Adidas expects Currency-neutral sales to increase between 5% and 8%, operating margin to be up between 11.3% and 11.5% and net income from continuing operations to increase between 10% and 14%.