adidas Group announces preliminary first quarter results and increases its 2012 financial outlook
(Thomson Reuters ONE) -
adidas AG /
adidas Group announces preliminary first quarter results and increases its 2012
financial outlook
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The issuer is solely responsible for the content of this announcement.
Herzogenaurach - The adidas Group today announces exceptional results for the
first quarter of 2012. Based on preliminary figures, Group revenues increased
14% on a currency-neutral basis or 17% in euro terms to ? 3.8 billion. This
fifth consecutive quarter of double-digit growth was driven by increases in all
regions and segments. In particular, growth rates in Greater China and Japan as
well as at TaylorMade-adidas Golf were significantly above initial expectations.
By region, sales in Greater China and in Other Asian markets increased 26% on a
currency-neutral basis. Currency-neutral sales in Western Europe grew 7%. In
European Emerging Markets, currency-neutral sales increased 15%. Sales for the
adidas Group in North America grew 11% on a currency-neutral basis. In Latin
America, sales were up 14% on a currency-neutral basis.
By brand, adidas sales increased 16% on a currency-neutral basis, with double-
digit growth in all regions, and most major categories. TaylorMade-adidas Golf
sales increased 32% on a currency-neutral basis, driven by significant growth
and market share gains in metalwoods and irons. Reebok sales declined 7% on a
currency-neutral basis mainly as a result of the transfer of sales to the
Reebok-CCM Hockey segment.
Despite a 0.7 percentage points decline in the Group's gross margin to 47.7% due
to input cost pressures, Group operating margin improved 1.1 percentage points
to 10.7% from 9.6% in the prior year. As a result, Group operating profit grew
30% to ? 409 million. Due to lower financial expenses as a result of the
reduction in net borrowings, and a lower tax rate, the Group's net income
attributable to shareholders increased 38% to ? 289 million.
"Our first quarter performance confirms the outstanding brand momentum and
global power of the adidas Group", commented Herbert Hainer, adidas Group CEO.
"Our investments in brands and channels are yielding an unprecedented period of
growth for the Group, as we continue to excite consumers and customers with the
ultimate in product and brand experiences."
Taking into account the better than expected first quarter financial
performance, the continuing strong momentum of the Group's brands in key
markets, as well as the negative impacts from potential one-time charges related
to today's announced restructuring of activities at Reebok India, the Group is
in a position to increase full year top and bottom line guidance.
Full year sales are now expected to grow at a rate approaching 10% on a
currency-neutral basis (previously: mid- to high-single-digit). Despite first
half pressures, the Group continues to forecast a stable gross margin compared
to the prior year. In addition, operating margin is expected to increase to a
level approaching 8%, despite negative one-time charges of up to ? 70 million
related to today's announced potential restructuring and changes to commercial
activities in India. As a result, net income attributable to shareholders is
expected to increase at a rate between 12% and 17% (previously: between 10% and
15%), to a new record level of between ? 750 million and ? 785 million. More
details on the first quarter financial results and the revised outlook will be
given with the publication of quarterly results on May 3, 2012.
Herbert Hainer stated: "Driving meaningful improvements in our profitability is
a central pillar of our Route 2015 strategy. The situation in India, although
unfortunate, will allow us to now accelerate plans to improve a specific
underperforming part of our business. Looking at the bigger picture, we are
right where we want to be. We are manoeuvring through the still challenging
economic environment in a diligent way, while at the same time ensuring we
capture the opportunities that will deliver on our promise - to secure long-term
quality growth and enduring success for our Group."
***
Contacts:
Media Relations Investor Relations
Jan Runau John-Paul O'Meara
Chief Corporate Communication Officer Vice President Investor Relations
Tel.: +49 (0) 9132 84-3830 Tel.: +49 (0) 9132 84-2751
Katja Schreiber Christian Stoehr
Director Corporate Communication Investor Relations Manager
Tel.: +49 (0) 9132 84-3810 Tel.: +49 (0) 9132 84-4989
Lars Mangels Johannes Fink
Corporate Communication Manager Investor Relations Manager
Tel.: +49 (0) 9132 84-2680 Tel.: +49 (0) 9132 84-3461
Please visit our corporate website: www.adidas-Group.com
Attachment: Press release adidas Group First Quarter 2011 Results:
http://hugin.info/139192/R/1607191/509729.pdf
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Source: adidas AG via Thomson Reuters ONE
[HUG#1607191]
Unternehmensinformation / Kurzprofil:
Datum: 30.04.2012 - 07:35 Uhr
Sprache: Deutsch
News-ID 140348
Anzahl Zeichen: 6283
contact information:
Town:
Herzogenaurach
Kategorie:
Business News
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