Adidas Group Earned 11 Billion 30 Million Euro In The First Three Quarters.

German sports giant Adidas The group released its third quarter 2013 earnings report. As of September 30th, when the exchange rate remained unchanged, the global sales revenue of the group remained stable in the third quarter, as sales of the retail business offset the decline in sales of wholesale businesses and other businesses. Sales in the Greater China region increased by 9%. The gross profit margin of the group increased by 2.1 percentage points to 49.8%, and the operating profit margin increased by 0.4 percentage points to 10.5%. However, currency exchange had a negative impact on the sales revenue settled in euros. Compared with 11 billion 514 million euros in 2012, group sales in the first three quarters of Adidas decreased by 4% to 11 billion 13 million euros.

"The serious adverse exchange rate, our short-term distribution bottlenecks in Russia / CIS countries and the inventory clearance in the global golf market have had a negative impact on our third quarter performance," said Herbert Hainer, chief executive of adidas group. "Despite these challenges, we have achieved stable earnings per share in the first three quarters. Our leading technology and strong partnership have significantly enhanced the position of our high-end multi brand sporting goods companies in the industry, which in turn boosted our gross margin record.

　　 Retail business Growth boosts sales performance in the first three quarters

In the first three quarters of 2013, due to the exchange rate unchanged, Adidas and Reebok Sales declined and wholesale business decreased by 2%. However, sales of retail business increased by 6% compared with the previous year, due to the increase in sales of Adidas and Reebok. Sales of other businesses fell by 1%, mainly due to the decline in sales of Taylor Adidas golf business. The exchange rate has a negative impact on sales revenue of various business sectors settled in euros.

　　 The group's net income based on shareholders has hardly changed.

In the first three quarters of 2013, the group's net income based on shareholders remained unchanged at 796 million euros (the same period in 2012: 798 million euros). In the first three quarters of 2013, the group's after tax rate dropped by 0.1 percentage points to 27.7% (the same period in 2012: 27.8%).

In the first half of 2013, according to the exchange rate unchanged, sales revenue of Adidas group increased in all regions outside Western Europe.

　　 Third quarter Adidas global sales

According to the exchange rate unchanged, Adidas group's global sales revenue remained stable in the third quarter of 2013.

From a regional perspective, sales revenue in Western Europe has decreased by 6%, mainly due to the fact that the 2012 London Olympic Games product order is strong, so this year showed a high contrast difference, and the region continued to face macroeconomic challenges.

From the brand point of view, the adidas business remained stable in the third quarter; sales of Reebok business increased by 5%; Taylor - adidas golf business sales fell by 16%; Reebok- CCM hockey sales increased 4%, while Rockport sales declined by 4%.

In the third quarter of 2013, taking into account the exchange rate factor, adidas Group sales revenue fell to 3 billion 879 million euros, compared with the 4 billion 173 million euro level in 2012, a 7% reduction. The group's net income based on shareholders fell 8% to 316 million euros (2012: 344 million euros). In the third quarter, basic and diluted earnings per share declined by 8% to 1.51 euros (2012: 1.64 euros).

　　 Adidas Group 2013 full year forecast

Following the announcement in September of this year's lower expectations this year, management can confirm that sales performance in the fourth quarter will be significantly improved. Therefore, according to the exchange rate unchanged, it is estimated that group sales will achieve a low digit growth rate in 2013.

In 2013, the gross profit margin of adidas Group is expected to rise to 48.5%-49.0% level, which has been greatly improved compared with the level of 47.7% last year. In addition, the growth of the retail sector and the Reebok brand will also have a positive impact on the gross profit margin of the group. However, these positive factors will be partly offset by last year's hedging exchange rate and higher labor costs, which will have a negative impact on the cost of sales.

In 2013, Adidas predicted that its operating profit margin would increase to around 8.5% (excluding goodwill impairment loss in 2012: 8%). As a result, earnings per share are expected to grow from 4% to 7% this year to 3.92 euro to 4.06 euros compared with the basic and diluted earnings per share of 3.78 euros in 2012, excluding goodwill impairment losses. This means that the group's net income based on shareholders will be between 820 million euros and 850 million euros.