Our business are excelling - adidas Group CEO
In the second quarter of 2011, Group revenues grew 10% on a currency-neutral basis. Currency-neutral revenues in Western Europe increased 5%, supported by double-digit growth at TaylorMade-adidas Golf and sales increases at adidas. In European Emerging Markets, currency-neutral sales were up 21% as a result of strong increases at both adidas and Reebok.
Group sales in North America grew 5% on a currency-neutral basis, supported by double-digit increases at adidas as well as TaylorMade-adidas Golf. In Greater China, Group sales were up 41% on a currency-neutral basis, supported by strong growth in all major categories. Currency-neutral revenues in Other Asian Markets and Latin America grew 6% and 8%, respectively. In contrast to previous quarters, currency translation effects had a negative impact on sales in euro terms. Group revenues grew 5% to € 3.064 billion in the second quarter of 2011 from € 2.917 billion in 2010.
Second quarter gross margin increases 20 basis points
The Group's gross margin increased 0.2 percentage points to 49.2% (2010: 48.9%) in the second quarter as a larger share of higher-margin Retail sales as well as a more favourable product and regional sales mix more than offset an increase in input costs. Group gross profit increased 6% to € 1.506 billion (2010: € 1.427 billion). Other operating expenses as a percentage of sales decreased 60 basis points to 43.3% compared to 43.9% the prior year, primarily due to lower marketing expenses.
As a result of the higher gross margin and lower other operating expenses as a percentage of sales, the Group's operating margin increased 0.5 percentage points to 7.1% versus 6.7% in 2010. Operating profit increased 12% to € 219 million compared to € 195 million in 2010. The Group's net income attributable to shareholders amounted to € 140 million (2010: € 126 million). Diluted earnings per share for the second quarter increased 11% to € 0.67 (2010: € 0.60).
"After outlining our strategic vision for the company through to 2015 late last year, we have wasted no time and come out of the starting blocks in typical adidas Group fashion - fast and focused," commented Herbert Hainer, adidas Group CEO. "No matter which way we break down our results - by segment, by region or by brand - all facets of our business are excelling."
adidas Group currency-neutral sales increase 14% in the first half of 2011
In the first half of 2011, Group revenues increased 14% on a currency-neutral basis. Currency translation effects had a negative impact on sales in euro terms. Group revenues grew 13% to € 6.337 billion in the first half of 2011 from € 5.590 billion in 2010.
First half adidas Group sales increase driven by double-digit growth in all segments
Currency-neutral Wholesale revenues increased 13% in the first half of 2011, driven by double-digit sales growth at both adidas and Reebok. Currency-neutral Retail sales increased 21% versus the prior year as a result of double-digit adidas and Reebok sales growth. Comparable store sales grew 15% on a currency-neutral basis. Revenues in Other Businesses increased 13% on a currency-neutral basis, mainly due to double-digit sales growth at TaylorMade-adidas Golf. Currency translation effects had a negative impact on segmental sales in euro terms.
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