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    Adidas: Double-Digit Growth In Both Sales And Net Profit.

    2016/4/29 12:22:00 46

    AdidasRunning ShoesBrand

     The sale of Stan Smith and NMD shocked the industry. Adidas group's net profit surged 38% in the first quarter.

    Consumers are very enthusiastic about Adidas's Stan Smith shoes, and Stan Smith sales account for 60% of the total Adidas brand sales of French department store Le Bon March.

    Driven by the strong performance of the classic Stan Smith and the newly launched NMD series shoes, the German sports giant Adidas group ushered in a new growth period, with double-digit growth in both sales and net profit, and the share price rose.

    According to the first quarter performance data released by Adidas group, group net profit surged 38% to 350 million euros (about 386 million 100 thousand U.S. dollars) in the quarter ended March 31st, sales grew 17% to 4 billion 800 million euros (about 5 billion 290 million U.S. dollars), operating profit increased 35% to 490 million euro yuan (about 540 million 500 thousand U.S. dollars).

    Sales profits accounted for 22% of the total profits.

    In addition, the Adidas group announced that it expected to increase its expected target in 2016, and that the net profit of continuing operations was raised from the increase of 10%-12% earlier to 15%-18%.

    Excluding exchange rate effects, sales rose from the previous 10%-12% increase to 15%.

    After the announcement of the expected increase,

    Adidas

    Group share price rose, as of the closing day, the group's stock price recorded a 6.4% increase.

    The Adidas group's performance this season has shocked analysts. Barclays Bank has rated it as "excellent" after the Bank predicted that Adidas group's net profit increased 10% this quarter.

    Many analysts believe that after the Adidas group launched its Boost running shoes, it redefined the original concept of consumers.

    Running shoes

    Understanding and further promoting the group's sales performance.

    According to an investment report from an analyst, Adidas group has achieved outstanding results this season thanks to its strong performance in sports shoes.

    Adidas and Kanye West have launched an unprecedented success in Yeezy sports shoes, and this movement will continue.

    Fabienne Ruset, head of shoe sales at Le Bon March e, a French department store, said that the performance of Adidas exceeded their expectations. In the current quarter, the sports shoes of Adidas accounted for 40% of the total sales of sports shoes.

    At the same time, consumers are very enthusiastic about Adidas's Stan Smith shoes, and Stan Smith accounts for 60% of the total Adidas sales of department stores.

    If not, she thought.

    brand

    To implement quota system for Stan Smith, the company can sell more Stan Smith shoes.

    "Stan Smith is constantly introducing new materials and new colors, but the enthusiasm of consumers is increasing. This is an incredible phenomenon."

    In addition, the cooperation between Adidas Superstar and Adidas and Stella McCartney is also very popular. The latest NMD style is also very successful and sold out in two days.

     The sale of Stan Smith and NMD shocked the industry. Adidas group's net profit surged 38% in the first quarter.

    The picture shows a store in Adidas.

    Fabienne Ruset, head of shoe sales at Le Bon March e, a French department store, said that the performance of Adidas exceeded their expectations. In the current quarter, the sports shoes of Adidas accounted for 40% of the total sales of sports shoes.

    At the same time, consumers are very enthusiastic about Adidas's Stan Smith shoes, and Stan Smith accounts for 60% of the total Adidas sales of department stores.

    She believes that if it is not for the brand to implement the quota system for Stan Smith, the company can sell more Stan Smith shoes.

    "Stan Smith is constantly introducing new materials and new colors, but the enthusiasm of consumers is increasing. This is an incredible phenomenon."

    In addition, the cooperation between Adidas Superstar and Adidas and Stella McCartney is also very popular. The latest NMD style is also very successful and sold out in two days.

    According to the relevant data, the Adidas NMD series of Citadium in the Youth Department of Paris Spring Department was sold out in a few hours.

    Citadium director Sophie Bocquet revealed that they expected that the demand for NMD shoes would be large, so they had already prepared a lot of goods, but they could not imagine that consumers would be so crazy.

    Early in the morning, many consumers were queuing up, especially Asian consumers.

    {page_break}

    Sophie Bocquet points out that in the past two years, Adidas Stan Smith has been greatly favored by fashion fads, especially female consumers. Previously, the brands of running shoes were ranked Nike and Asics, but Adidas ZX Boost running shoes were also very popular last year, and sales increased by 60% last year.

    According to the latest data released by NPD group, American market research company, in 2015, the sports shoes industry in the United States increased by 8% to 17 billion 200 million dollars.

    This is the best performance in a few years.

    Matt Powell, vice president and sports industry analyst at NPD group, said that footwear performance in 2015 entered the cooling season, especially running and basketball series.

    But leisure and retro style products show an increasing trend, which will become an important trend in 2016.

    This quarter's strong growth has been driven by classic categories, especially retro basketball shoes and running shoes, which grew by 30% to 3 billion 500 million dollars.

    Analysts at RBC expect the group's organic revenue to grow by 10% in the first quarter.

    Analysts believe that the positive performance of the sports industry, the strong development momentum of Adidas brand, the ample orders in the first half and the coming management changes will push the group's share price to a record high.

    This year, the Adidas group will bring two important sports events, including the Rio De Janeiro Olympic Games and the 2016 European Football Championship.

    In addition, the group appointed Kasper Rorsted, chief executive of Henkel group, a German daily chemical giant, to be the new CEO of Adidas group in January this year.

    He will join the company in August. After two months of pition, he will take over as CEO Herbert Hainer in October 1st.

    Some analysts believe that since the cooperation between Adidas and Kanye West, the Adidas brand has been defined as a sports giant who can ascend the fashion show. In addition, it also acts more like a fast fashion retailer.

    It is a good way for Adidas to increase profit margins and cut costs by bringing more consumers' favorite styles to the store and removing products that are not well sold at the right time.

    The brand is progressively improving, providing new products and hot products regularly, but fashion is a well-known capricious industry, and the trend may be fleeting.

    However, some authoritative figures believe that the German sportswear retailer is starting to make herself cool. The skills learned from the fast fashion giants Zara and H&M will help Adidas achieve sustained profitability, just as the sparkling Stan Smith has been standing on the front end of the fashion.

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