Home / Knowledge / News / Apparel/Garments / Double-digit sales growth in Retail & Other biz at adidas
Double-digit sales growth in Retail & Other biz at adidas
Aug '12
In the second quarter of 2012, adidas Group revenues grew 7% on a currency-neutral basis, driven by double-digit sales increases in Retail and Other Businesses. Currency-neutral revenues in Western Europe increased 5%, supported by sustained momentum at adidas as well as double-digit growth at TaylorMade-adidas Golf. In European Emerging Markets, currency-neutral sales grew 18% as a result of strong increases at both adidas and Reebok. Group sales in North America grew 10% on a currency-neutral basis, supported by strong double-digit increases at TaylorMade-adidas Golf and double-digit growth at adidas.

In Greater China, Group sales were up 13% on a currency-neutral basis, driven by double-digit growth at adidas as well as growth at Reebok. Currency-neutral revenues in Other Asian Markets increased 2% as double-digit growth at both adidas and TaylorMade-adidas Golf was partly offset by a strong sales decline at Reebok.

In Latin America, currency-neutral sales decreased 2% as growth at adidas was more than offset by a sales decrease at Reebok. From a brand perspective, second quarter sales at adidas increased 11% currency-neutral. Sales in the TaylorMade-adidas Golf segment grew 25% on a currency-neutral basis. Reebok sales declined 26% on a currency-neutral basis, largely as a result of negative impacts from Reebok India Company and the non-recurrence of prior-year licence sales. Currency translation effects had a positive impact on sales in euro terms. Group revenues grew 15% to € 3.517 billion in the second quarter of 2012 from € 3.064 billion in 2011.

The Group's gross margin decreased 0.9 percentage points to 48.2% (2011: 49.2%) in the second quarter as product price increases, a more favourable product and regional sales mix as well as a larger share of higher-margin Retail sales only partly offset a significant increase in input costs. Group gross profit increased 13% to € 1.697 billion (2011: € 1.506 billion). Other operating expenses as a percentage of sales decreased 1.0 percentage points to 42.4% compared to 43.3% the prior year, despite a 13% increase in the Group's marketing expenditure. As a result of the lower other operating expenses as a percentage of sales, which more than offset the lower gross margin, the Group's operating margin increased to 7.3% from 7.1% in 2011. Operating profit increased 17% to € 256 million compared to € 219 million in 2011. The Group's net income attributable to shareholders grew 18% to € 165 million (2011: € 140 million). Diluted earnings per share for the second quarter increased 18% to € 0.79 (2011: € 0.67).

"We have delivered another winning financial performance in the first half of 2012," commented Herbert Hainer, adidas Group CEO. "Our clear victory in the summer of football, our increased operating margin and our excellent inventory management show we have the right formula to preserve and sustain our positive earnings and cash flow trajectory."

Must ReadView All

Textiles | On 26th May 2017

Lenzing unleashes new eco-friendly fibre

There's a new eco-friendly fibre on the anvil—Austrian speciality...

Apparel/Garments | On 26th May 2017

Benetton seeks approval for FDI in single-brand retail

Global fashion brand Benetton Group, has sought Indian government's...

Apparel/Garments | On 26th May 2017

Walmart to conduct GST workshops for SME suppliers

With the objective of supporting its small and medium-sized (SME)...

Interviews View All

Manuj Terapanthi

Transparent supply chain and fair trade will boost sustainable market

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search