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adidas brand sales target increased by 5%

22 Sep '12

5 min read

Going forward, the global marketing organisation of Reebok will be organised in Business Units that build products and concepts for these respective fitness categories and for Classics.

Following the strategic decision not to renew the previous NFL licence, a change in reporting of NHL-related licence sales and the Group’s focus on margin and operational efficiency, Reebok’s 2015 sales target is now reduced to € 2 billion from € 3 billion (about one third of the reduction relates to NFL- and NHL-related sales). Matt O’Toole, Chief Marketing Officer of Reebok: “Our razor-sharp focus on fitness will allow us to capture the hearts and minds of all fitness enthusiasts worldwide. Our new category structure will already bring more focus and a deeper product offering and will provide better commercial opportunities as we turn the corner into 2013.”

The Group’s three key attack markets North America, Greater China as well as Russia/CIS are expected to contribute 50% of the Group’s sales growth within the strategic business plan Route 2015. In North America, the adidas brand currently enjoys strong momentum, with 2012 set to be the third consecutive year of delivering double-digit sales growth, fuelled by adidas Originals, basketball, American football and running.

Patrik Nilsson, President of adidas North America: “We have almost doubled our market share in the last three years by focusing on the next generation athlete. But this is just the beginning. This market continues to offer huge potential to us.”

Lawrence Norman, adidas Vice President of Global Basketball: “The strong double-digit momentum we are generating in basketball is a key image driver for our adidas brand in North America. And not just here, we are also enjoying double-digit success in the other regions of the world.” To highlight the importance of the category, participants at the event were also joined by NBA All-Star Dwight Howard from the Los Angeles Lakers who shared his experiences with the adidas brand.

For the full year 2012, the adidas Group continues to forecast new record sales and earnings. Currency-neutral sales are projected to increase at a rate approaching 10% versus 2011, with earnings per share to grow 15% to 17% (€ 770 million to € 785 million). The adidas Group’s operating margin is forecasted to increase to a level approaching 8%.

Herbert Hainer commented: “By leveraging quality growth to generate higher-margin sales and keeping tight control of our operating expenses, we are confident to add approximately 1 percentage point to our operating margin per annum starting in 2013 – showing clearly that we are on track to reach our 11% operating margin goal by 2015. The adidas Group has never been in better shape and as we journey on Route 2015 we will continue to unlock significant value by sustaining our legacy as a global powerhouse in the sporting goods industry.”

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