Home / Knowledge / News / Fashion / adidas & TMAG to show strong momentum in H2

adidas & TMAG to show strong momentum in H2

05
Aug '08
During the second quarter of 2008, Group revenues grew 14% on a currency-neutral basis. All brand segments contributed to this development with currency-neutral sales increasing 19% at adidas, 2% at Reebok and 6% at TaylorMade-adidas Golf. Currency movements negatively impacted Group sales in euro terms. Group revenues grew 5% in euro terms to € 2.521 billion in the second quarter of 2008 from € 2.400 billion in 2007.

Second quarter EPS increases 15%:
The Group's gross margin increased 2.7 percentage points to a new record level of 50.1% (2007: 47.4%) in the second quarter as a result of an improving regional and product mix, further own-retail expansion and favorable currency movements. Group gross profit increased 11% to € 1.263 billion (2007: € 1.138 billion). As a result of the strong gross margin increase in all brand segments and operating profit growth in the HQ/Consolidation segment, the Group's operating margin increased 0.4 percentage points to 8.2% in the second quarter of 2008 versus 7.8% in the prior year.

These effects more than offset higher operating expenses as a percentage of sales primarily as a result of the phasing of this year's marketing expenses in the adidas segment. Operating profit grew 10% to € 208 million versus € 188 million in 2007. In the second quarter of 2008, the Group's net income attributable to shareholders increased 12% to € 116 million (2007: € 104 million) due to the higher operating profit as well as a lower tax rate. As a result of the lower weighted average number of shares due to the share buyback program, earnings per share increased at an even stronger rate. Basic EPS for the second quarter grew 15% to € 0.59.

adidas Group currency-neutral sales grow 12% in the first half of 2008:
During the first six months of 2008, Group revenues increased 12% on a currency-neutral basis, driven by double-digit sales growth in the adidas and TaylorMade-adidas Golf segments. The adidas segment grew 16%, the Reebok segment decreased 2% and TaylorMade-adidas Golf segment sales increased 11%. Currency movements negatively impacted Group sales in euro terms. Group revenues grew 4% in euro terms to € 5.142 billion in the first half of 2008 from € 4.938 billion in 2007.

"We are proud to report a strong set of financial results for the first half of 2008. Our performance is nothing short of exceptional, particularly in light of the tougher macroeconomic environment," commented adidas CEO and Chairman Herbert Hainer. "adidas and TaylorMade-adidas Golf continue to show strong momentum and we have laid the foundation at Reebok for continued improvement in the second half of the year."

Strong sales increase in nearly all regions:
adidas Group sales grew at double-digit rates in all regions except North America where revenues declined. First half Group sales in Europe grew 16% on a currency-neutral basis as a result of strong increases in nearly all countries. In North America, Group revenues declined by 8% on a currency-neutral basis due to lower adidas and Reebok sales in the USA. Sales for the Group in Asia increased 25% on a currency-neutral basis in the first half of 2008, driven by particularly strong growth in China.


Must ReadView All

Pic: Hai Huy Ton That | Dreamstime.com

Textiles | On 29th Nov 2021

Vietnam’s textile-garment industry may flourish in 2022: Industry body

Vietnam’s textile-garment sector is expected to earn $40 billion in...

Pic: Andy Nowack | Dreamstime.com

Textiles | On 29th Nov 2021

US textile & apparel exports up 20.15% in Jan-Sept 2021

The exports of textile and apparel from United States increased by...

Pic: craig hastings | Dreamstime.com

Textiles | On 29th Nov 2021

Germany’s GDP rises by 1.7% in Q3 2021 over Q2: Destatis

Germany’s gross domestic product (GDP) rose by 1.7 per cent in the...

Interviews View All

Vandana Narang, National Institute of Fashion Technology

Vandana Narang
National Institute of Fashion Technology

Campus placements are low due to lockdowns

Textile Industry, Head honchos

Textile Industry
Head honchos

Delay in adopting water sustainability both financially & environmentally...

Textile Industry, Head honchos

Textile Industry
Head honchos

Occam's razor principle and purpose-driven innovations

G Tumbarello,

G Tumbarello

Lilly + Sid is an award-winning organic children's clothing company from...

Yawer Ali Shah,

Yawer Ali Shah

Synthetic colours and dyes were all the rage till the very first ban on...

Ujjval Saraf,

Ujjval Saraf

Founded by Jimmy Lai, Giordano International Ltd, a Hong Kong based...

Hemant Bheda, Arevo

Hemant Bheda
Arevo

Arevo, based in Silicon Valley in California, develops technology to...

Dr Anup Rakshit, ITTA

Dr Anup Rakshit
ITTA

The Indian Technical Textile Association (ITTA) is the only association of ...

Silverio Baranzano, Fitesa

Silverio Baranzano
Fitesa

Fitesa is a leader in the nonwoven fabrics industry, specialising in...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

<b>Ruma Devi i</b>s a jet-setting promoter of artisans who has empowered...

Sandeep Gonsalves & Sarah Gonsalves, Sarah & Sandeep

Sandeep Gonsalves & Sarah Gonsalves
Sarah & Sandeep

Established in 2012, Sarah &amp; Sandeep is a luxury menswear label...

Manish Malhotra, Label Manish Malhotra

Manish Malhotra
Label Manish Malhotra

A multitalented designer and founder of an eponymous label, Manish...

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


November 2021

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


Advanced Search