Currency-neutral sales increase in all regions, adidas
05 May '11
5 min read
Group gross margin almost unchanged at 48.5% The gross margin of the adidas Group decreased 0.1 percentage points to 48.5% in the first quarter of 2011. Higher input costs were offset by the positive impact from less clearance sales as well as a larger share of higher-margin Retail sales. Gross profit for the adidas Group grew 22% in the first quarter of 2011 to € 1.587 billion versus € 1.300 billion in the prior year.
Operating profit increases 21% Group operating profit increased 21% to € 313 million versus € 260 million in 2010. As a percentage of sales, the operating margin of the adidas Group was down 0.1 percentage points to 9.6% in the first quarter of 2011 (2010: 9.7%). This development was primarily due to the non-recurrence of prior year positive effects related to the settlement of a lawsuit and the divestiture of a trademark, which more than offset lower other operating expenses as a percentage of sales. Excluding these effects, on a comparable basis, the Group's operating margin was up around 1.0 percentage points.
Financial income down 61% Financial income decreased 61% to € 5 million in the first quarter of 2011 from € 12 million in the prior year, mainly due to the non-recurrence of positive exchange rate effects in the prior year.
Financial expenses increase 14% Financial expenses increased 14% to € 33 million in the first quarter of 2011 (2010: € 29 million), mainly as a result of negative exchange rate effects. Excluding these effects, financial expenses decreased 16%.
Income before taxes increases 17% Income before taxes (IBT) for the adidas Group increased 17% to € 285 million from € 243 million in 2010. IBT as a percentage of sales declined 0.4 percentage points to 8.7% in the first quarter of 2011 from 9.1% in 2010. This was primarily a result of the Group's operating margin decrease and the lower financial result.
Net income attributable to shareholders up 25% The Group's net income attributable to shareholders increased to € 209 million in the first quarter of 2011 from € 168 million in 2010. This represents an increase of 25% versus the prior year level. Higher IBT was the primary reason for this development. The Group's tax rate decreased 4.0 percentage points to 26.5% in the first quarter of 2011 (2010: 30.5%), mainly due to a more favourable earnings mix.
Earnings per share reach € 1.00 In the first quarter of 2011, basic and diluted earnings per share amounted to € 1.00 (2010: € 0.80), representing an increase of 25%. The weighted average number of shares used in the calculation for both the current and prior year quarter is 209,216,186.
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