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    Adidas Greater China Revenue Increased 13% In The Three Quarter

    2011/11/4 9:29:00 18

    Adidas Fashion Anta

      

    Adidas

    The third quarter results were released yesterday, excluding exchange rate factors. The income of the Greater China region increased by 13% over the same period last year. It has dropped sharply compared with the 41% year-on-year growth figures in the second quarter of this year.


    Adidas said that it was not surprising that the growth rate slowed down, mainly because the performance of Adidas in Greater China in the second half of last year has resumed growth, while in the first half of 2010, it is still in the recession cycle. Due to the different base, the one or two quarter results increased considerably, and the three quarter growth was greatly reduced.


    In the first three quarters of this year, the total income of Adidas Greater China was 900 million euros. According to the data of the second quarter and the first quarter, it was estimated that the income of Adidas Greater China was 348 million euros.

    The two digit growth of Adidas sports fashion products is one of the main drivers of its Greater China performance.

    Adidas disclosed that its professional sports products revenue increased by 10% over the three quarter, including sales of sports training products, running products and outdoor products.

    fashion

    Products grew by 22% compared with the same period last year, and Reebok grew by 29%.


    Before Adidas announced its three quarter results, Anta, a Chinese sporting goods company (02020.HK), was announced to be affected by the economic environment such as inflation in China. The growth rate of orders in the first half of next year will be reduced to a single digit, and the number of Anta stores in the end of 2011 will be adjusted from 8200 to 7800 to 8000.

    Another sporting goods company PEAK (01968.HK) also announced that next year the order will be reduced to a single digit growth.


    Market participants told reporters, including Anta,

    Peak

    It is a wise move for domestic sporting goods companies to adjust the growth of next year's performance to a single digit. In fact, after the listing of domestic sporting goods enterprises, in order to cater to the needs of the capital market, and constantly emphasize the annual two digit or 20%~30% revenue growth, a large number of specialized stores are opened up. This is a kind of behavior which does not conform to the actual situation, which leads to a great pressure on channel inventory. In fact, under normal circumstances, it can generally maintain about 15%, which has been a good achievement.


    As of the end of September 2011, Adidas had more than 6500 stores in Greater China, compared with the end of 2010, a net increase of 6530, of which 167 were Adidas's proprietary stores.


    The performance of Chinese sporting goods companies has slowed down. Adidas said that the company did not encounter similar problems. The company replied: "we cleaned up the channels in 2009 and 2010, optimized the structure and layout of retail stores, and optimized the product mix, so our current inventory status is very healthy."


    According to the report, in the euro, the stock of Adidas in the third quarter was 2 billion 302 million euros, an increase of 20% compared with the same period last year, and its gross margin was 47.1%, down 2.1 percentage points compared with 49.2% in the second quarter.


    The company said that orders in the first, second quarter of 2012 in Adidas Greater China remain strong, will continue to open new stores, and will also close some inefficient stores, although the economic situation is not optimistic, compared with 2009, the company is much more prepared.

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