adidas more optimistic for upcoming FIFA World Cup

08 May '10

4 min read

adidas group announced result of first quarter 2010.

adidas Group currency-neutral sales increase 4% in the first quarter of 2010
In the first quarter of 2010, Group revenues increased 4% on a currency-neutral basis as a result of growth in the Wholesale and Retail segments as well as sales increases in Other Businesses. Currency translation effects did not have a significant impact on sales in euro terms. Group revenues grew 4% to € 2.674 billion in the first quarter of 2010 from € 2.577 billion in 2009.

“We had a great start to the year, achieving record first quarter sales driven by growth in all segments,” commented Herbert Hainer, adidas Group CEO. ”Our Retail segment, record football sales and a strong performance for adidas and Reebok in North America were some of the main catalysts driving this development.”

Herbert Hainer stated: "This quarter's accomplishments are a real testament to the strength of our brands and clearly demonstrate that our product and marketing strategies are really making a difference. With the Reebok turnaround gathering pace and the FIFA World Cup kicking off in a few weeks, we have a lot of reasons to be optimistic. Therefore we feel confident to raise the bar and increase our full-year guidance."

Group sales increase driven by Retail segment
The adidas Group's sales increase in the first quarter of 2010 was driven by double-digit growth in the Retail segment as well as higher sales in the Wholesale segment and Other Businesses. Currency-neutral Wholesale revenues increased 1% during the period due to higher adidas sales. Currency-neutral Retail sales increased 16% versus the prior year as a result of double-digit adidas and Reebok sales growth. Revenues in Other Businesses increased 8% on a currency-neutral basis as a result of double-digit sales growth at TaylorMade-adidas Golf.

Currency translation effects only had a minor impact on segmental sales in euro terms. Wholesale revenues increased 1% to € 1.898 billion in the first quarter of 2010 from € 1.874 billion in 2009. Retail sales increased 15% to € 459 million versus € 400 million in the prior year. Sales in Other Businesses grew 7% to € 316 million in the first quarter of 2010 (2009: € 295 million).

Currency-neutral sales increase in nearly all regions
In the first quarter of 2010, currency-neutral adidas Group sales increased in all regions except Greater China and Other Asian Markets. Revenues in Western Europe increased 4% primarily as a result of higher sales in the UK and Germany. In European Emerging Markets, Group sales increased 1% on a currency-neutral basis due to growth in most of the region's markets. Sales for the adidas Group in North America increased 14% on a currency-neutral basis due to increases in both the USA and Canada. Sales in Greater China decreased 15% on a currency-neutral basis. Revenues in Other Asian Markets declined 3% primarily as a result of decreases in Japan. In Latin America, sales grew 18% on a currency-neutral basis, with increases in most of the region's major markets.

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