Adidas Focuses On North America To Recover Lost Territory

Adidas AG Adidas said 2015 will focus on recovering land lost in the North American market.

Last month, Herbert Hainer, the chief executive of the office, said that "we hope to win the market".

The North American strategy is the main component of the new five year development plan originally scheduled for Herbert Hainer on 26 this month. However, the board of directors of Adidas AG Adidas has officially sought new CEO.

Adidas AG Adidas lacks enough growth momentum in recent years, and is being pulled farther away by Nike Inc. (NYSE:NIKE) Nike group, the industry leader in the US.

In mid 2014, due to the weakness of golf business and North American market, Adidas AG Adidas issued a profit warning, resulting in its stock price plunging by 15% on a single day, the largest single day decline in 17 years.

At the fixed exchange rate, the fourth quarter

AG Adidas North America has been involved in golf business TaylorMade-adidas Golf and Reebok Reebok Reebok's performance. Sales decline has increased to 4.2%, worse than 1.4% in the three quarter, but double-digit growth has been achieved in Western Europe, Greater China, European emerging markets and Latin America, with a total sales of 3 billion 610 million euros in the quarter, a 6.5% increase over the 3 billion 391 million euro in the same period of fiscal year 2013.

Among them, the sales of Adidas Adidas brand were 11.3% strong, Reebok Reebok increased by 0.6%, TaylorMade-adidas Golf Golf fell by 24.2%.

According to the channel, the sales of 20% and 5% of the retail and wholesale channels were increased, and the sales of the same shop increased by 9% annually.

Annual sales rose 2.3% to 14 billion 534 million euros, 2013 euros in fiscal year 14 billion 203 million, and 6% after the exchange rate.

According to the fixed exchange rate, the group achieved growth in all markets except North America. North America declined by 6% due to poor performance in the United States, and increased by 8% in Western Europe, in Greater China and Western Europe.

And Latin America increased by 10%, 19% and 19% respectively.

According to brand, Adidas, Adidas and Reebok Reebok sales increased by 10.8% and 4.7% respectively, while TaylorMade-adidas Golf fell 27.7% year-round.

The net loss in the fourth quarter climbed to 139 million euros from 10 million euros in the same period of the same period. At the operating profit level, the net loss was 40 million yuan, and 32 million euros in the previous year.

Net profit decreased by 37.2% to 496 million euros in the whole year, and 790 million euros in fiscal 2013, of which the Russian business generated 78 million euros of goodwill impairment; operating profit was 883 million euros, down 23.2% from the previous year's 1 billion 181 million euro, and the operating profit rate dropped from 8.3% in the previous year to 6.1%.

However, the group still maintains an annual dividend of 1.50 euros per share, which is higher than the 1.35 euros expected by the market, which means that the proportion of dividend payout to net profit has increased to 53.9% from 37.4% in the previous year. In addition, the second phase of the 1 billion 500 million Euro euro shareholder return plan launched on the basis of share repurchase will be opened on Friday, which will stimulate the Adidas AG (ADSGn.DE) share price up to 4.45% to 17.09 euros on Thursday.

Group expects this year

Excluding the sale of some items such as Rockport and 7%-10%, the growth of 7%-10% will be realized. The operating profit margin will be in the range of 6.5%-7.0%.

Despite the high cardinality and geopolitical instability of the 2014 World Cup in Brazil, the group predicts that all brands will grow.

Adidas AG Adidas group has hired headhunter Egon Zehnder to look for new CEO.

The 60 year old Herbert Hainer is the longest serving CEO of Adidas AG Adidas, despite the board's dissatisfaction with it, but last year, Herbert Hainer continued to renew its contract with the group until 2017.

According to the open letter issued by Herbert Hainer to the group, the new CEO promotion and external appointment are possible. It is said that Eric Liedtke and Roland President Auschel, the head of group global brand, are the most competitive candidates.

At the time of the deadline, the Adidas AG (ADSGn.DE) rose narrowed to 3.10%, at 71.14 euros, and has risen by 23.5% since 2015.