Adidas Sales Up 18% For First Quarter

The adidas Group has announced its first quarter results for 2011, with sales increasing by 18% on a currency-neutral basis, as well as net income to shareholders up by 25%.

The improvements come as a result of sales increases in wholesale, retail and other businesses.

Group revenues grew 22% to nearly £3bn in the first quarter of 2011, from £2.4bn for the same time period in 2010.

Herbert Hainer, adidas Group CEO, said: ‘We are off to a powerful start in 2011 with record first quarter results’.

‘Strong double-digit growth in key markets such as North America, Greater China and Russia and the successful introduction of new products and campaigns by adidas, Reebok and TaylorMade underline the strength and desirability of our Group brands all around the globe’.

In the first quarter of 2011, currency-neutral wholesale revenues increased 18% due to double-digit sales growth at both adidas and Reebok.

Currency-neutral retail sales increased, mainly as a result of growth of comparable store sales, while revenues in other businesses were up 14% on a currency-neutral basis, driven by sales increases at TaylorMade-adidas Golf.

In 2011, the adidas Group gross margin is forecasted to reach a level between 47.5% and 48.0%, which will benefit from positive regional mix effects.

In addition, improvements in the retail segment as well as at the Reebok brand is believed to positively influence the adidas Group gross margin development.

Hainer added: ‘The strong start to the year affirms our confidence in reaching all our projections for 2011. Although the unfortunate events in Japan will certainly affect our business in this important market, our global strength will provide ample opportunities to cover the expected shortfalls’.

‘As a result, our bottom-line guidance remains unchanged, meaning that 2011 will provide a fitting start to our strategic business plan Route 2015’.