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    Depreciation Of Foreign Currency Affects Adidas's Sales Revenue By 6%

    2014/5/9 16:49:00 28

    Foreign CurrencyMetamorphismSports Brand

    < p > although the domestic sports brand encountered cold winter, Adidas's sales revenue in Greater China still kept increasing. However, by the depreciation of foreign currency, compared with the sales revenue of 3 billion 751 million euros in 2013, Adidas's sales revenue decreased by 6% to 3 billion 533 million euros in the first quarter of 2014. < /p >
    < p >, Adidas explained that "currency exchange has a significant negative impact on the sales revenue settled in euros". < /p >
    < p > "from our first quarter financial performance, we can see that the opening of 2014 is challenging as we have expected. Our strategic changes in Taylor Adidas golf products and the negative impact of currency convertibility have erased strong performance, especially in emerging markets and private retail businesses. Herbert Heiner, chief executive of Adidas group (HerbertHainer), pointed out: "although we still need to be alert to the trend of currency exchange rate and its impact on our financial situation, I am looking forward to strong performance in the second quarter, and on this basis, the group will enter a sustained and dynamic growth period". < /p >
    In the first quarter of 2014, Adidas's gross margin dropped by 1 percentage points to 49.1%. P Adidas believes that the reasons for this situation are: the more unfavorable hedging rate, the lower profit margins of the Taylor Adidas golf products caused by the strategic changes in the product and delivery cycle, the negative impact of the depreciation of foreign currencies and higher input costs. It is understood that sales and gross margins of Adidas products have been negatively affected by the apparent depreciation of the Russian rouble against the euro and the US dollar. < /p >
    < p > besides, due to double-digit decline in sales of Taylor Adidas golf products, Adidas's other business revenue has decreased by 27%. In this regard, Adidas explained that "mainly because of the strategic transformation of Taylor Adidas golf products, so as to readjust key shipments, products and launch cycle according to market demand pattern." < /p >
    < p > in the first quarter of 2014, the net income of Adidas based on shareholders declined from 308 million euros in 2013 to 204 million euros, equivalent to a 34% decline on the basis of last year's sales. < /p >
    < p > data show that Adidas's sales revenue in the first quarter of 2014 in North America, other Asian markets and Latin America declined year-on-year. Adidas has achieved 5% sales growth in Greater China. < /p >
    Gao Jiali, ColinCurrie managing director of Adidas group, said: "sound financial performance continues to support our healthy growth." P Since we launched the "2015 way" strategy three years ago, we have strengthened our position in all key categories and expanded our retail business nationwide. This is a solid start for Adidas to achieve a bumper harvest year. Later this month, we will launch the largest football publicity campaign in history ever since the FIFA World Cup 2014. < /p >
    In addition to P, Adidas believes that the extremely high exposure rate and the expanding retail network in the rapidly developing emerging markets will also have a very beneficial impact on sales revenue. The company expects that gross margins will increase to 49.5% to 49.8% in 2014 (49.3% in 2013), while Adidas also predicts that "gross margins will increase in most sectors". < /p >
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