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    ADI Is Dragged Down By More Than 200 Million Euros By Shoe Industry Reebok.

    2013/3/14 22:35:00 23

    FootwearFootwearFootwear Industry Dynamics

    < p > after Nike said that it plans to open a 40~50 self owned factory store this year, Adidas announced its Q4 performance and its annual performance.

    Adidas said its Q4 operating loss was more than 239 million euros because of its weakness in the US and Latin America market, compared with its 28 million 600 thousand euro profit forecast by analysts.

    < /p >


    < p > in the industry view, Adidas's performance is also in line with the industry trend.

    The Chinese sports less than a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > the weakness of supplies consumption has extended from local brands to international brands. Both domestic and foreign brands have entered the adjustment period due to the bottleneck of industry growth.

    < /p >


    < p > Reebok Q4 sales fell 12% < /p >


    Less than p days ago, the world's second largest sport was a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > Adidas said Reebok Q4 sales fell 12% to 428 million euros.

    In the fourth quarter of last year, Adidas suffered a loss due to Reebok's 265 million euro impairment.

    < /p >


    According to the exchange rate unchanged, the sales revenue of Adidas Greater China in 2012 increased by 15% over the same period last year. < p >

    In 2011, sales growth in the Greater China region was as high as 23%, driven by the two digit growth of sports performance series and sports fashion series.

    < /p >


    < p > analysts have told the daily economic news that Reebok is not outstanding in product design. "Reebok has never had a good record in China."

    < /p >


    < p > Zhang Qing, founder of the key way sports Consulting Co. Ltd., said he thought relatively speaking, considering the current industry background, Adidas's pcript is still good.

    After the inventory crisis in 2008, Adidas has had some experience in dealing with the corresponding problems.

    < /p >


    < p > the latest earnings report of the other giant Nike has not yet been released, but its earnings for the second quarter ended November 30, 2012 showed that its net profit fell 18% from last year's US $469 million to US $384 million.

    Nike's sales in China dropped 11% to 577 million dollars in the quarter.

    < /p >


    < p > industry insiders say that China's sporting goods industry has already accumulated structural problems before its pursuit of simple and rapid growth, and also has the impact of the underdevelopment of China's sports industry.

    < /p >


    < p > Zhang Qing told reporters that in foreign countries, the era of high growth in sports brands has basically ended.

    But in China, sports haven't become the mainstream lifestyle, so sports brand consumption is relatively fragile and substitutable.

    < /p >


    < p > brand fall across the line < /p >


    < p > the trend of local sports brand downturn has lasted for a long time.

    Recently, the annual report released in 2012 showed that its revenue last year was 4 billion 950 million yuan, down 11% from the same period last year, and net profit was 715 million yuan, down 38% from the same period last year.

    Prior to Anta sports 2012 earnings report also showed that turnover fell 14.4%, net profit is down 21.5%.

    Analysts believe that the consumption of Chinese sporting goods has weakened from local brands to international brands.

    < /p >


    < p > Zhang Qing believes that for the brand, the current problems in the Chinese market are the main reasons affecting their performance and subsequent development plans.

    Not only is the local sports brand, but also the international brand has suffered the bottleneck of growth and the high inventory problem.

    < /p >


    < p > for these sports brands, the most painful process from extensive to meticulous pformation is to clear up inventory.

    Previously, the results of the third global sports brands PUMA (Puma) announced that the gross profit margin of Puma dropped from 49.6% to 48.3% due to the clearance of inventory, especially the < a target= "_blank" href= "http://www.91se91.com/" > shoes < /a > products, the gross profit rate dropped from 49.1% to 46.5%.

    In the fourth quarter of last year, Puma lost $56 million 800 thousand.

    < /p >


    After two consecutive quarters of growth inflection point, Nike has also begun to increase inventory clearance.

    The daily economic news reporter had learned from his insider that Nike plans to open a new 40~50 factory store this year, which is far more than the past. At the same time, the new factory store will expand from the first line to the two or three line market, and the discount will remain at 3 to 60 percent off.

    "Nike opens a factory store to explain that they urgently need to solve the inventory problem."

    Shao Ligang, general manager of nine consulting management, said.

    < /p >


    < p > Shao Ligang pointed out to the daily economic news reporter that the sports brand is paying for the huge expansion of a few years ago.

    < /p >


    The above analysts are not optimistic about the situation of sports brand this year, P.

    Zhang Qing pointed out that due to the fact that some sports brands failed to inventory in 2012, it would be a severe year in 2013.

    < /p >

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