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    World Cup Helped Adidas Increase Revenue In The First Half Of 11%

    2010/8/6 15:52:00 95

    Adidas World Cup Reebok

    In the world cup

    Adidas

    Ushered in a long awaited performance rebound.

    German time August 4th, Adidas released semi annual report shows that the first half of the world's total revenue of 5 billion 590 million euros, calculated in euros, an increase of 11% over the past year, the Greater China market is troubled by high inventory prices, revenue decreased by 16% over the same period, Adidas is the world's six largest market in the only negative growth areas.


    Adidas announced that as of June 30th this year, in addition to the Greater China region, with the euro calculated, all other markets in the first half of the year achieved two digit growth.


    China's market is sluggish, and Adidas says the main reason is the need to deal with inventory.

    Though affected by China

    market

    Dragged down, Adidas's global revenue in the first half of the year was 5 billion 590 million euros, an increase of 11% in euros.

    Adidas CEO Herbert Heiner (Herbert Hainer) said: "thanks to the pull of the world cup in South Africa and the recovery of Reebok brand in the North American market, Adidas performed well in the first half of the year. In the second quarter of this year, the exchange rate factor was eliminated, Adidas and

    reebok

    Sales of two brands increased by 13% and 16% compared to the same period last year.


    In order to sponsor the world cup, Adidas has spent a lot of money this year.

    Financial data show that Adidas's sales and marketing expenses in the first half of this year were 756 million euros, up 20% from the 630 million euros a year earlier, and increased by 126 million euros. The increase is mainly used to sponsor the world cup in South Africa.


    A big hand in the world cup allowed Adidas to earn enough "eyeballs", which has a strong pulling effect on store sales, coupled with a reduction in raw material costs. Apart from the Greater China region, Adidas's sales of discounted and clear goods accounted for a decrease in total sales. These factors contributed to a sharp rebound in Adidas's gross profit and other financial indicators.

    Adidas group's gross profit margin increased by 3.7 percentage points to 48.8% in the first half of the year. The gross profit margin increased Adidas group's gross profit in the first half of this year to 2 billion 727 million euros, a 20% increase compared with 2 billion 269 million euros in the same period last year.

    The increase in gross profit increased the operating profit margin of Adidas group by 5.5 percentage points in the first half to 8.1%, compared with 2.6% in the same period last year, and operating profit surged from 129 million euros in the first half of last year to 454 million euros in the first half of this year, an increase of 251%.


    Adidas's performance in the first half of the year was better than that in the first half of the year. Adidas has raised its expectations for the whole year's performance. Adidas originally predicted that the wholesale sales volume will grow at a low median level, and now it will be adjusted to a median digit growth rate. Retail business will achieve a two digit growth at a low level.

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