Negative currency impacts Adidas Q4 topline by 9%

05 Mar '14

2 min read

Adidas AG delivers exceptional fourth quarter results. “We finished 2013 with an exceptionally strong fourth quarter. Currency-neutral sales grew 12%, which was above our expectations,” commented Herbert Hainer, adidas Group CEO.

“This ensured that we met our revised full year targets from September, despite a further worsening of currency exchange rates. In the fourth quarter alone, negative currency effects cost us 9 percentage points on the top line.”

Q4 2013 HIGHLIGHTS

-Currency-neutral Group sales increase 12%

-Group sales grow in all regions, channels and brands

-adidas and Reebok brand sales increase 10% and 9% currency-neutral, respectively

-Comparable Retail store sales up 3% currency-neutral

FULL YEAR 2013 HIGHLIGHTS

-Currency-neutral Group sales up 3% on a currency-neutral basis

-Gross margin improves 1.5pp to 49.3%

-Goodwill impairment in an amount of € 52 million

-Operating margin excluding goodwill impairment improves to 8.7%

-Earnings per share excluding goodwill impairment increase 6%

to a record level of € 4.01

-Net cash position of € 295 million at year-end

-Management to propose dividend of € 1.50 per share

OUTLOOK

-Group results in 2014 to be significantly impacted by currency movements

-Currency-neutral Group sales to increase at a high-single-digit rate

-Operating margin to be at a level between 8.5% and 9.0%

-Net income attributable to shareholders to be at a level between

€ 830 million and € 930 million

ADIDAS GROUP CURRENCY-NEUTRAL SALES INCREASE 12% IN THE FOURTH QUARTER

In the fourth quarter of 2013, Group revenues grew 12% on a currency-neutral basis. Currency-neutral sales in Retail and Other Businesses increased 15% and 28%, respectively. Sales in the Wholesale segment grew 8% on a currency-neutral basis. Currency-neutral revenues in Western Europe increased 3%, supported by strong double-digit growth at Reebok and TaylorMade-adidas Golf. In European Emerging Markets, currency-neutral sales were up 11% as a result of double-digit revenue growth at both adidas and Reebok.

Group sales in NorthAmerica increased 14% on a currency-neutral basis, driven by double-digit sales increases at adidas, TaylorMade-adidas Golf and Reebok-CCM Hockey. In Greater China, Group sales were up 8% on a currency-neutral basis, driven by strong double-digit sales gains at adidas Originals & Sport Style. Currency-neutral revenues in Other Asian Markets grew 15%, due to double-digit increases at adidas and TaylorMade-adidas Golf.

Click here to view full results.

adidas AG

More Adidas News... More Apparel/Garments News - United States Of America...