Germany : Preliminary results indicate 2014 sales up 6% at Adidas

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Preliminary results indicate 2014 sales up 6% at Adidas

27
Jan '15

Excluding impact from divestiture of Rockport business, currency-neutral sales at Adidas Group rose by 6 per cent from the previous year in 2014, based on preliminary unaudited figures.

In euro terms, sales were up 2 per cent to €14.8 billion as against €14.5 billion it reported last year.

Adidas was able to achieve it target for net income which totaled to €650 million, excluding goodwill impairment losses and the impact of the Rockport divestiture.

Adidas said all sales channels contributed to this positive top-line development, with strong double-digit growth in retail.

Brand wise, Adidas sales grew 11 per cent year on year on a currency-neutral basis, while Reebok ended the year with currency-neutral sales increase of 5 per cent.

Net income was impacted by two non-operational items. Goodwill impairment losses related to its Russia/CIS cash-generating unit, mainly due to deterioration of the Russian rouble of around €80 million.

In addition, the successful conclusion of negotiations to divest the Rockport business, had a negative non-operational P&L impact in a double-digit million euro amount.

CEO Herbert Hainer said, "Our strong sales momentum for adidas and Reebok continued in the fourth quarter, with double-digit growth posted in Western Europe, China, European emerging markets and Latin America.

“Despite continuing pressure as a result of further currency weakness in Russia/CIS, we achieved our 2014 earnings target,” he added.

He concluded by saying, “Now we are looking forward to 2015 where we will continue to invest in our growth opportunities and present our long-term vision for the successful future of the Adidas Group."

Adidas added that it will release its final and audited full-year results on March 5, 2015.

Adidas Group offers a broad portfolio of footwear, apparel and hardware for sport and lifestyle around the core brands adidas, Reebok, TaylorMade and Reebok-CCM Hockey.

Headquartered in Germany, the Group employs more than 50,000 people across the globe and generated sales of €14.5 billion in 2013. (AR)

Fibre2fashion News Desk - India

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