Does Adidas Also Have A Low Season After NMD?

In the past few months, Adidas's double-digit growth in training, running and soccer category has been due to the NMD series. Last week, the group disclosed an increase of 16.8% in sales in the first quarter. The fixed exchange rate increased by 22%. Net sales increased from 4 billion 83 million euros in the same period last year to 4 billion 769 million euros. This is the highest quarterly sales in group history.

85% of Adidas Adidas

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

While Reebok Reebok grew steadily, sales rose 1% to 416 million euros, and the fixed exchange rate rose by 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, CEO of Adidas AG Adidas group, who will step down 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 estimates 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 at 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 wary of Adidas AG Adidas group's need to beware of the biggest competitor Nike Inc. (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 has finally decided to sell most of its assets, including TaylorMade, Adams and Ashworth, which only keep Adidas Adidas's golf wear and golf shoes business.

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

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

But golf has been the biggest market since its heyday in 2000.

For years, the number of people involved in the campaign decreased from nearly 30 million in the year to 23 million now, and the golf business has repeatedly exhausted the Adidas AG Adidas group from 2014.

The group hired in August last year to invite investment bank Guggenheim Partners LLC to evaluate golf business, and restructured the business to revive the business in order to increase sales price, enhance sales promotion, optimize supply chain and product cost.

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

In the 2015 fiscal year, 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 revealed that the whole sector was still suffering small losses.

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

Herbert 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 was widely rumored to be processed at the end of 2014, Herbert Hainer reiterated its reservation after the earnings analysts' meeting, because the fitness market is booming, and the sales of Reebok Reebok have been increasing for the 12 consecutive quarter.

Herbert Hainer also revealed that the group would shut down all the 16 independent stores of Adidas Neo 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 operated by authorized partners, and revealed that the sales of the brand reached 1 billion euros last year, and its sales increased by 60% in the first quarter.

In the first quarter, the Adidas AG Adidas group achieved a profit of 490 million euros, an increase of 35.2% from 363 million euros in the same period last year, and the operating profit margin also increased by 140 basis points to 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 around the world.

Including the European Cup, the Centennial cup and the Olympic Games, especially the first two, many Adidas AG Adidas group sponsors.

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.