adidas sales down 13% in first quarter
08 May 2007 09:31
A weak market in North America led to a decrease of 13% in pre-tax income for adidas in the first quarter. The company added that the decline in the group operating profit as well as increased net financial expenses contributed to this. However, first quarter currency neutral sales for the group were up 9%, mainly driven by sales growth in the adidas segment and the inclusion of an additional month in the Reebok segment versus the prior year. adidas group sales grew strongly in all regions except North America where sales were stable in the period. This growth was driven by strong operational developments in the adidas brand as well as the consolidation of three months of Reebok’s revenues in the first quarter of 2007 versus only February and March in the prior year. First quarter adidas group sales in Europe grew 10% on a currency neutral basis whereas in North America, group sales were stable on a currency neutral basis. Currency translation effects negatively impacted sales at all brands in euros. adidas sales in euro terms increased 2% to €1.819 billion in the first quarter of 2007 from €1.776 billion in 2006. Sales at Reebok increased 15% to reach €524 million versus €454 million in the prior year. TaylorMade-adidas Golf sales in euro terms declined 10% to €180 million in 2007 from €201 million in 2006. adidas AG chairman and CEO Herbert Hainer commented: "Our group has gotten off to a strong start in 2007. The Reebok integration is beginning to pay off as we realize the first revenue and cost synergies. adidas and TaylorMade-adidas Golf impressed with strong product launches."
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