Adidas'S Golf Sales Fell 1.75% Compared To The Same Period Last Year And Will Be Sold.

Adidas AG (ADSGn.DE)

The group announced today's first quarter results and announced the final decision to sell golf business.

Adidas AG (ADSGn.DE) increased by 2% to 115.75 euros early on Wednesday, close to 52 week high.

Adidas originals

The global rush to launch the big heat model NMD and the double-digit growth of Adidas Adidas brand training, running and football category become the main driving force of Adidas AG Adidas group.

Last week, the group disclosed earlier that it recorded a 16.8% increase in sales in the first quarter, a 22% increase in fixed exchange rates, and a net sales increase from 4 billion 769 million euros in the same period last year to 4 billion 769 million euros, the highest quarterly sales in the group.

The Adidas Adidas brand sales increased by 20.4% to 4 billion 36 million euros, with a fixed exchange rate of 25.5%. The fixed exchange rate recorded strong growth of 31%, 30% and 26% of the three major markets in North America, Greater China and Western Europe. Juergen Kolb, a Kepler Cheuvreux analyst, estimated that Adidas originals NMD has been selling 450 thousand pairs since the market was launched in March this year.

And Reebok

Stable development, sales rose 1% to 416 million euros, and fixed exchange rate rose 6.5%.

Fixed exchange rates, including all the markets including Russia, can grow, especially in Japan (44.4%), Greater China (30.2%), Western Europe (24.7%) and North America (21.6%).

Russia and Latin America also recorded an increase of 1.8% and 18.7% respectively, but the real exchange rate declined by 15% and 6.8% respectively.

In the quarterly report, Herbert Hainer Hainer, CEO of Adidas AG Adidas group, who is stepping down in office at the end of September, pointed out that he was particularly pleased with the performance of North America. He thought the results showed that the group's investment in this important market has been rewarded.

NPD Group analyst Matt Powell Powell estimated that the US sales of Adidas AG Adidas group jumped by more than 50% in March, and the Adidas AG Adidas brand is especially good in lifestyle runners, classic and casual footwear categories.

In the past two years, Adidas AG, Adidas group, which is catching up with Under Armour Inc. (NYSE:UA) Andrea, a local sporting goods manufacturer, is now rushing to recover its lost territory.

Euromonitor Natasha Cazin analyst also believes that the group's recent North American strategy is "encouraging", but he is alert to Adidas AG Adidas group's need to beware of the biggest competitor Nike Inc. NYSE:NKE (NYSE:NKE) Nike group in Western Europe and greater China, because the latter is taking market share.

In the first quarter, TaylorMade golf business continued to decline, sales fell 1.75% to 275 million euros, accounting for about 5.8% of the group's sales.

Adidas AG, Adidas now decides to sell most of its assets, including TaylorMade, Adams and Ashworth, with only Adidas's Adidas golf brand and golf shoes business.

The group said it would engage in specific negotiations with potential buyers.

In 1997, the Group acquired the TaylorMade brand golf brand through the acquisition of Salomon SA, a French skiing manufacturer. In 2008 and 2012, it purchased $72 million 800 thousand and $70 million for Ashworth and Adams respectively.

However, golf has been in the biggest market for many years since its peak in 2000. The number of people participating in the sport has decreased from nearly 30 million to 23 million now. Golf business has been repeatedly involved since 2014. Adidas AG Adidas group's profit is urgent.

In August last year, the group hired Guggenheim Partners LLC, an investment bank, to evaluate golf business, and restructured the business to revive the business in order to raise prices, strengthen sales promotion, optimize supply chain and product costs.

Although the TaylorMade golf business has slowed down since then, showing signs of recovery, the recovery measures are expensive.

In fiscal year 2015, sales of TaylorMade golf business decreased by 1.3% to 902 million euros compared with the previous year's 913 million euros, while the fixed exchange rate decreased by 13.2%, and sales in 2012 were 1 billion 400 million euros.

In the first quarter, TaylorMade and Adidas golf products recorded an increase of 6% and 3% respectively, but they could not offset the double-digit decline of Ashworth and Adams, and Herbert Hainer said that the whole sector was still suffering small losses.

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Exane BNP Paribas SA (BNP.PA) Graham Renwick Renwick, an analyst at Bank of Paris, France, estimated that the valuation of golf business is at least 270 million euros.

Herbert Hainer Hainer, chief executive, points out that stripping off the above three golf brands will help reduce business complexity and enable the group to focus on developing high returns and the most consumer accepted business, such as footwear and clothing.

As for the Reebok Reebok, which is widely rumored to be processed at the end of 2014, Herbert Hainer Hainer reiterated that the brand will be retained after the earnings analysts' meeting, because the fitness market is booming, and the sales of Reebok Reebok have been increasing for the second consecutive quarter.

Herbert Hainer also revealed that the group would shut down all the 16 independent stores in the European Adidas Neo, which were distributed in Europe, and distribute it to wholesale partners, because wholesale sales were more successful.

He stressed that the decision would not affect China's 2000 Adidas Neo stores, which were authorized to operate by partners, and revealed that its sales reached 1 billion euros last year, and its sales increased by 60% in the first quarter.

In the first quarter, Adidas AG, Adidas group achieved a profit of 490 million euros, an increase of 35.2% from 363 million euros a year ago, and a 140 basis point profit margin of 10.3%.

Net profit from continuing operations also soared 37.6% to 350 million euros.

In April 27th, the group raised its annual performance expectations for the second time in three months. It is expected that the annual revenue growth rate will reach 15%, which was expected to be 10%-12%, and the net profit growth from continuous operation for the whole year will also increase from 10%-12% to 15%-18%.

The gross profit margin in the first quarter was 49.4%, a slight increase of 30 basis points over the same period last year.

The group now expects gross profit margin to be reduced by 50 basis points over the 2015 fiscal year 48.3%, rather than 50-100 basis points previously expected.

In 2016, there were many sports events held in the world, including the European Cup, the Centennial cup and the Olympic Games. In particular, the top two entries were sponsored by Adidas AG, Adidas group.

Despite the first quarter results released by the world's largest sports shoe maker, 9904.TW, Taiwan Yuyuan Industrial (Holdings) Holdings Limited (0551.HK), the growth of the sports shoes market has slowed down, but the market is expected to pick up in the two or three quarter as sports events approach.

At the time of the deadline, the Adidas AG (ADSGn.DE) early segment narrowed to 0.71% and reported 114.25 euros, which has gained 27.1% since 2016.