In the second quarter of 2015, Adidas Group revenues grew 5 percent on a currency-neutral basis, driven by continued sales momentum at both Adidas and Reebok. In euro terms, Group revenues grew 15 percent during the second quarter to 3.907 billion euros (4.257 billion dollars) in 2015. Currency-neutral Adidas revenues grew 8 percent, driven by double-digit sales increases at Adidas Originals and Adidas NEO as well as mid-single-digit growth in the training category.

Adidas Group currency-neutral sales increase 7 percent in the first half of 2015 due to double-digit growth at adidas as well as high-single-digit increases at Reebok. Group revenues grew 16 percent to 7.990 billion euros (8.704 billion dollars) in the first half of 2015. Currency-neutral Adidas revenues grew 10 percent. This development was driven by double-digit sales increases at Adidas Originals and Adidas NEO as well as high-single-digit growth in the training and running categories.

“2015 will be a successful year for the Adidas Group. With a strong order book on hand, we are very confident that the robust momentum of our core brands Adidas and Reebok will continue throughout the second half of the year and fuel the targeted top- and bottom-line growth,” said Herbert Hainer, Adidas Group CEO.

Second quarter currency-neutral Reebok sales were up 6 percent versus the prior year as a result of double-digit sales increases in the training, running and studio categories as well as mid-single-digit growth in Classics. Revenues at TaylorMade-adidas Golf declined 26 percent currency-neutral, due to sales decreases in most categories, in particular metalwoods and irons. Currency-neutral Reebok sales were up 8 percent in the first half versus the prior year, mainly as a result of double-digit sales increases in the training and studio categories as well as high-single-digit sales growth in running. Revenues at TaylorMade-adidas Golf decreased 17 percent currency-neutral.

From a segmental perspective, combined currency-neutral sales of the Adidas and Reebok brands in the second quarter of 2015 grew particularly strongly in Western Europe, Greater China and MEAA, with revenues up at double-digit rates each. Revenues in Western Europe increased 12 percent on a currency-neutral basis, due to double-digit sales growth at Adidas and high-single-digit growth at Reebok. Currency-neutral sales in North America remained stable, as sales growth at Adidas was offset by declines at Reebok. Revenues in Greater China were up 19 percent on a currency-neutral basis, reflecting double-digit top-line growth at Adidas and Reebok.

Currency-neutral sales in Russia/CIS decreased 14 percent due to declines at both Adidas and Reebok. Further store closures contributed to this development. In Latin America, revenues grew 9 percent on a currency-neutral basis with double-digit sales growth at Reebok as well as high-single-digit increases at Adidas. In Japan, sales were down 6 percent on a currency-neutral basis as sales growth at Reebok was more than offset by declines at Adidas which were mainly related to the non-recurrence of last year’s World Cup related revenues. Sales in MEAA grew 16 percent on a currency-neutral basis, reflecting double-digit top-line growth at both Adidas and Reebok.

Revenues in Other Businesses were down 14 percent in the second quarter and 8 percent in the first half on a currency-neutral basis in the second quarter, as double-digit sales growth at Reebok-CCM Hockey and Other centrally managed businesses was more than offset by the significant decline at TaylorMade-adidas Golf. The Adidas Group has initiated a major turnaround plan for its golf business. In addition, the Group has engaged with an investment bank for the purpose of analysing future options for the company’s golf business, in particular the Adams and Ashworth brands.

In the first half, on a currency-neutral basis the combined sales of the Adidas and Reebok brands grew in all market segments except Russia/CIS and Japan. Revenues in Western Europe increased 12 percent, in North America sales increased 3 percent driven by mid-single-digit growth at Adidas, partly offset by declines at Reebok due to ongoing efforts to streamline the brand’s own-retail activities. Revenues in Greater China grew 20 percent on a currency-neutral basis, due to double-digit growth at both Adidas and Reebok.

Currency-neutral sales in Russia/CIS declined 10 percent, in Latin America, revenues grew 8 percent on a currency-neutral basis. This development was driven by double-digit sales growth at Reebok as well as mid-single-digit growth at Adidas. In Japan, sales were down 1 percent. Revenues in MEAA grew 12 percent.

In the first half of 2015, gross profit for the Adidas Group increased 15 percent and the gross margin of the Adidas Group declined 0.4 percentage points to 48.8 percent. The Group’s gross profit increased 13 percent in the second quarter but gross margin decreased 0.9 percentage points to 48.3 percent. Net income from continuing operations increased 2 percent.

The Group expects sales to increase at a mid-single-digit rate on a currency-neutral basis in 2015. The Group’s top-line development will be driven by the ongoing robust momentum at both adidas and Reebok, in particular in Western Europe, Greater China and MEAA, where revenues are now expected to grow at a double-digit rate each. The gross margin is forecasted to be at a level between 47.5 percent and 48.5 percent.

 

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