Adidas'S First Quarter Results Accelerated Decline

< p > > a href= "http://www.91se91.com/news/index_f.asp" > Adidas < /a > recently released quarterly report shows that in the first quarter of 2014, the company achieved sales income of 3 billion 533 million euros, a decrease of -6% compared with the same period last year, and realized net profit of 204 million euros, down by -34% compared with the same period last year.

Meanwhile, gross margin dropped by 1 percentage points to 49.1%.

This is Adidas's sales revenue for two consecutive years of decline.

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< p > for the reasons for the decline in the first quarter performance, Adidas said that because of the strategic changes in the product and delivery cycle, the income of Taylor Adidas golf products declined, and the two was the negative impact caused by the depreciation of foreign currency. The sales and gross margins of its products were negatively affected by the obvious depreciation of the Russian rouble against the euro and the US dollar.

The three is the increase in input costs.

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< p > results show that the first sale of Taylor Adidas golf products in the first quarter was double digit decline, dragging down other business revenue by 27%.

Herbert Heiner, chief executive of Adidas group, said: "our strategic changes in Taylor Adidas golf products and the negative impact of currency convertibility have obliterated the company's strong performance." (Herbert Hainer)

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< p > subregional, the biggest decline in sales in the first quarter was the North American market, which fell by -23.5% compared with the same period last year. Sales in Latin America and other Asian markets all showed negative growth.

In Western Europe, the largest sales market in Adidas, its sales revenue was 1 billion 98 million euros, but the increase was almost zero.

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Less than P, sales in the Greater China region, which were highly regarded, remained stable in the first quarter.

Excluding the exchange rate change factors, Adidas achieved sales revenue of 419 million euros in the Greater China region in the first quarter, an increase of 5% over the same period last year, which is the third growth area besides the emerging markets in Europe and Latin America.

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< p > data show that the performance of Adidas's international sports giant is accelerating.

In 2011~2013, its sales revenue was 13 billion 300 million, 14 billion 900 million and 14 billion 492 million euros respectively. The growth rate was 13%, 12% and -3% respectively. Its net profit was 613 million, 526 million and 787 million euro respectively, with a growth rate of 18%, -14% and 49% respectively.

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In the first quarter of 2012 and the first quarter of 2013, Adidas's sales revenue was 3 billion 824 million euros and 3 billion 751 million euros, respectively. Its growth rate was 14% and -2% respectively, and the decline was further expanded to -6%.

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< p > in Greater China, its sales growth has also declined in recent 3 years.

In 2011~2013, its sales revenue was 1 billion 229 million, 1 billion 562 million and 1 billion 655 million euros respectively, with an increase of 23%, 15% and 7% respectively.

In the first quarter of 2012 and the first quarter of 2013, its sales growth in Greater China was 26% and 6%, respectively.

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< p > for Adidas's performance in China's a href= "http://www.91se91.com/news/index_s.asp" > market < /a >, the key of sports consulting company CEO Zhang Qing compares Adidas's biggest competitor Nike's performance.

He pointed out that from the Chinese market, in recent years, Nike has continuously increased investment in sports, won the sponsorship of China Super League, sponsored many basketball stars, and strengthened communication with the middle class and new urban residents, making great efforts in the use of big data marketing.

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< p > Adidas has adopted the measures of channel sinking, launching leisure series and low price series in order to maintain growth in 2008. Although this has relieved inventory pressure in the short term, it lacks impetus for growth in the long run.

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< p > financial reports show that, in the first 2 months ended February 2014, Nike achieved a revenue of $6 billion 970 million, an increase of 13% over the same period last year, and a net profit of $685 million, an increase of 3% over the previous year.

This double growth is in sharp contrast to the accelerated decline of Adidas's performance.

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< p > this Zhang Qing believes that Adidas can learn from Nike's marketing methods, increase investment in sports resources, learn how to better use the Internet to accelerate reaction speed, and establish a closer relationship with consumers.

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< p > on the overall performance in 2014, Adidas expects that sales revenue will be driven by the "a href=" http://www.91se91.com/news/index_h.asp "Brazil World Cup < /a", with high digit growth. The high exposure rate of the company in the rapidly developing emerging market and the expanding retail network will also promote the sales revenue growth of the company.

However, the negative impact of currency convertibility on Euro settlement is not expected to be eliminated.

Gao Jiali, managing director of Greater China in Adidas group, said the company will launch the largest football category publicity campaign ever since the 2014 World Cup.

The company also expects gross profit margin to be between 49.5%~49.8% in 2014.

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