Home / Knowledge / News / Fashion / '2008 is another record year for the company' - adidas CEO, Chairman
'2008 is another record year for the company' - adidas CEO, Chairman
04
Mar '09
Mr Herbert Hainer, adidas Group CEO and Chairman
Mr Herbert Hainer, adidas Group CEO and Chairman
Fourth quarter Group revenues grew 4% on a currency-neutral basis. This development was due to higher sales in the adidas segment. Reebok and TaylorMade-adidas Golf revenues declined. On a regional basis, currency-neutral sales grew by double-digit rates in both Asia and Latin America. Revenues in Europe remained stable on a currency-neutral basis, while sales in North America decreased. Currency movements had a positive impact on revenues in euro terms. Group sales in euro terms increased 6% to € 2.574 billion in the fourth quarter of 2008 (2007: € 2.419 billion).

Fourth quarter net income attributable to shareholders increases strongly
Fourth quarter gross margin declined 0.2 percentage points to 46.4% (2007: 46.6%). A higher gross margin in the adidas segment could not offset declines in the Reebok segment as a result of higher clearance sales at lower margins and in the TaylorMade-adidas Golf segment. At TaylorMade-adidas Golf, a promotional golf retail environment had a negative effect on gross margin development.

Group gross profit grew 6% to € 1.194 billion (2007: € 1.127 billion). Net operating expenses and income as a percentage of sales decreased mainly due to lower marketing expenses in the adidas segment. The realisation of a book gain in an amount of € 21 million related to the acquisition of Ashworth, Inc. was partially offset by restructuring costs and other one-time expenses of € 7 million.

As a result, the Group's operating margin increased 1.7 percentage points to 4.2% in the fourth quarter of 2008 versus 2.5% in the prior year. Operating profit grew 77% to € 107 million versus € 61 million in 2007. The Group's net income attributable to shareholders increased 151% to € 54 million (2007: € 21 million) due to higher operating profit and a lower tax rate. The Group tax rate declined strongly as a result of one-time tax benefits. Net financial expenses, however, increased primarily as a result of net foreign currency exchange losses resulting from the revaluation of balance sheet positions in foreign currencies.

adidas Group currency-neutral sales grow 9% in 2008
In 2008, Group revenues increased 9% on a currency-neutral basis, as a result of strong sales growth in the adidas and TaylorMade-adidas Golf segments. Currency translation effects negatively impacted Group sales in euro terms. Group revenues grew 5% in euro terms to € 10.799 billion in 2008 from € 10.299 billion in 2007.

"2008 was another record year for our Group," commented Herbert Hainer, adidas Group CEO and Chairman. "This performance is clearly a testament to the underlying strength of our business model - being global, diversified and consumer focused."

adidas and TaylorMade-adidas Golf segments drive top-line performance
The adidas segment was the most significant contributor to Group sales growth in 2008. Currency-neutral adidas segment revenues increased 14% during the period, driven by double-digit increases in all major performance categories. Currency-neutral sales in the Reebok segment decreased 2% versus the prior year. Growth in the running category was offset by declines in most other categories.


Must ReadView All

Courtesy: Pexels

Fashion | On 23rd Jun 2018

Nigerian bank launches N1 bn fund for fashion entrepreneur

Nigeria’s Bank of Industry has set aside 1 billion Naira (N) to...

Courtesy: Tayal

Textiles | On 23rd Jun 2018

Tayal textile factory in Algeria starts exports to Turkey

Algeria’s largest textile factory, the joint Algerian-Turkish company ...

Courtesy: Manhattan Beachwear

Fashion | On 23rd Jun 2018

Manhattan Beachwear in global partnership with BCBG Group

Manhattan Beachwear, the largest swimwear manufacturer in the US, has ...

Interviews View All

Top executives
Textile industry

It will take some time for the people to change their buying choices

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search