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    Adidas Doesn'T Want To Sell Reebok Anymore.

    2015/5/6 15:08:00 65

    AdidasPerformanceReebok

    In the first quarter, due to a more reasonable combination of products and prices, gross profit increased by 17% over the same period last year, reaching 2 billion 8 million euros ($2 billion 247 million).

    But at the same time, high gross profit was offset by high cost and negative currency, so the gross profit margin in the first quarter was flat compared with the same period last year, still 49.2%.

    Adidas released its first quarter earnings in 2015, and CEO Herbert Haina described it as "a strong return" (back in full swing).

    According to the exchange rate unchanged (the same below), as of March 31st, Adidas group's operating income increased by 9% compared to the same period last year, reaching 4 billion 83 million euros (about 4 billion 569 million US dollars).

    In terms of business, the first quarter revenue growth was mainly attributable to the two digit growth of Adidas sales and the high single digit growth of Reebok brand.

    In Adidas's brand, the consistent strength product line sports performance series and sports fashion series are still the main driving force for growth.

    The Reebok brand, which was purchased 3 billion 100 million euros ($3 billion 469 million) ten years ago, has been a heavy burden for Adidas because of its poor performance. Last year, it was reported that it had been sold.

    In the first quarter, after Reebok's high single digit growth, Haina told Reuters that it would never sell the brand.

    He also stressed that "it is foolish to throw away Reebok at this stage". It seems that management has confidence in reshaping Reebok.

    "We have a good start this year, and the two brands of Adidas and Reebok are growing strongly.

    With innovative sports performance series, fashion design and interactive marketing campaigns, we have brought surprises to global consumers.

    Hina said in an interview with Reuters.

    However, in addition to Adidas's brand and Reebok, the business revenue of other businesses decreased by 1% in the first quarter, including golf brand Taylor.

    In the 2014 fiscal year, Taylor's global sales fell by 28%, and brand pressure increased.

    According to the analysis of earnings reports, the situation of the brand has improved slightly in the first quarter, and the group will not consider selling it for the time being.

    However, according to Reuters, there are already some investors in Taylor brand choose to divest.

    Looking at the performance of various regions in the world, the total sales volume of Adidas and Reebok in the first quarter achieved a comprehensive growth in all regional markets except Russia and CIS.

    Among them, the operating income of Greater China increased by 21% compared to the same period last year, reaching 414 million euros (about 461 million US dollars), becoming the largest regional market in the first quarter.

    Adidas

    Continue to maintain a higher growth rate in Greater China.

    Besides,

    Sales volume

    The North American market, which fell for three consecutive years, achieved a 7% revenue growth in the first quarter, and the situation improved.

    Last year, after Under Armour took second of the nation's top seat, Adidas appointed an experienced new North American regional president, Mark king, and launched a series of product design and marketing campaigns catering to American tastes in March.

    Affected by this, Adidas's marketing expenditure increased by 26% in the first quarter, reaching 5 million 540 thousand euros (about 6 million 166 thousand and 600 US dollars).

    Now the growth figures in North America are right.

    Headquarters in Germany

    Something is explained.

    In Western Europe, Latin America and Japan, Adidas's year-on-year revenue growth was 11%, 6% and 7% respectively.

    In the Middle East, Africa and other parts of Asia, its growth rate has reached 10%. The growth of potential emerging markets is of great significance to brands.

    In addition, Russia's and CIS regional revenues declined by 3% over the past year, thanks to the deterioration of the Russian economy.

    From the first quarter of the situation, Adidas Group expects revenue in fiscal year 2015 will maintain a median digits rate growth, gross margin will be between 47.5%-48.5%.

    On the day of the release of the earnings report, Adidas's stock price rose 3.3%, and this quarterly earnings report seems to have been recognized by investors.

    In recent years, Adidas has repeatedly failed to achieve profit targets, which triggered a strong dissatisfaction with shareholders CEO Herbert Haina.

    In February this year, they announced the formal search for the new CEO. The appropriate successor has not yet appeared.


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