Adidas's Global Sales Increased 16% 2017 In The First Quarter.

Excluding exchange rate factors, revenue growth was 16%. Due to the negative impact of foreign exchange factors, gross margin fell by 0.2 percentage points. The global operating profit margin increased by 0.9 percentage points to 11.1%. The net income of global continuous operation increased by 30% to 455 million euros. The basic earnings per share of global continuous operation and discontinuous operation increased by 29% to 2.26 euros.

Excluding the exchange rate factor, Adidas's Greater China sales increased by 30% in the first quarter of 2017. It has continued the strong growth momentum of the past few quarters with its beautiful performance and further consolidated the leading position of the brand in the Chinese market.

Mr. Gao Jiali (Colin Currie), managing director of Adidas Greater China, said: "in 2016, the company's total sales volume hit a new high, creating a good start for the five year strategy of Greater China in 2020.

Today, I am pleased to announce that we maintained this strong growth momentum and momentum in the first quarter of 2017.

Excellent performance has proved again that in the field of sports performance and sports fashion, Adidas is China.

The attractiveness of China is increasing rapidly, making us closer to the strategic goal of becoming the best sports brand in China and even in the world in 2020.

Excluding exchange rate factors, Adidas's global sales increased by 16% in the first quarter of 2017.

At the beginning of 2017, Adidas achieved a perfect start in the world.

In the first quarter, excluding the exchange rate factor, Adidas's global sales revenue increased by 16%, of which Adidas's brand grew by 18%, and Reebok's brand grew by 13%.

According to the euro, global income increased by 19% to 5 billion 671 million euros (2016: 4 billion 769 million euros).

Adidas's revenue growth benefited from running category, outdoor products, and Adidas sports classic series, Neo series all recorded two digit sales growth.

The growth of Reebok's brand revenue is mainly due to the two digit sales growth achieved by training series and classic series.

From the point of view of the channel, Adidas's business performance in the global scope is outstanding, with revenue rising by 53% in the first quarter.

Adidas Global CEO Rothd (Kasper Rorsted) said: "it maintained a strong sales and profit growth momentum in 2016 and achieved a good start in 2017.

The company's main brands, Adidas and Reebok, and key markets all achieved two digit sales growth.

With the growing demand for Adidas products from all over the world, our profitability continues to rise significantly in the face of continuing adverse monetary factors.

On this basis, we have identified the 2017 annual performance prospects, aiming to achieve two digit revenue growth and further enhance profitability.

From different markets, excluding the exchange rate factor, in the first quarter of 2017, in addition to Russia / CIS, the combined sales volume of the two major brands of Adidas and Reebok increased in all markets, including sales in North America increased by 31%, sales in the Greater China region increased by 30%, Japanese sales rose 21%, and sales in Middle East, Africa and Asia (MEAA) increased 15%.

The 2016 European Cup and the Americas Cup related products significantly promoted sales and increased the growth this year. Despite this, excluding the exchange rate factors, sales revenue in Western Europe and Latin America increased by 10% and 9% respectively in the first quarter of 2017.

Sales in Russia / CIS declined by 10%, due to falling consumer desire and closet closure.

Excluding exchange rate factors, other business revenue increased by 4%, mainly due to the growth of other headquarters direct business and Taylor Adidas golf business.

The decline in sales of branded equipment business and the pfer of existing National Ice Hockey (NHL) partnership to Adidas brand will lead to a decline in the sales revenue of licensed clothing business. Excluding the exchange rate factor, the sales revenue of CCM Hockey declined.

Due to the negative impact of the expected exchange rate offset, offset the benefits of pricing, product mix optimization and input cost reduction, the gross margin of the company decreased by 0.2 percentage points to 49.2% (2016: 49.4%).

Other operating expenses accounted for a 1.3 percentage point decrease in sales revenue to 39.1% (2016: 40.3%), which is mainly due to the effective management of sales expenditure and market input, and a phased adjustment of marketing expenditure.

The company's operating profit in the first quarter reached 632 million euros, up 29% (2016: 490 million euros).

As a result, the company's gross profit margin in the first quarter rose 0.9 percentage points to 11.1% (2016: 10.3%), and net income from continuous operation increased by 30% to 455 million euros, and 350 million euros in 2016.

The basic earnings per share increased by 29% to 2.26 euros (2016: 1.75 euros) in 2017.

Stock assets rose 23% to 3 billion 609 million euros (2016: 2 billion 939 million euros).

Excluding exchange rate factors, stock assets rose by 18%, reflecting higher inventory levels in line with the growth rate of the company.

By the end of March 2017, working capital increased by 17% to 4 billion 554 million euros (2016: 3 billion 883 million euros).

The average working capital decreased by 0.1 percentage points to 20.1% (2016: 20.2%) in the sales revenue generated by the continuous operation business, showing a strong sales growth in the 12 months of last year. It also indicated that the company will continue to strengthen its working capital management.

As of March 31, 2017, net borrowing rose to 859 million euros (2016: 809 million euros), an increase of 51 million euros compared with the same period last year.

This is mainly due to the purchase of fixed assets in cash and the continuous repurchase of company shares.

Driven by the two digit growth in sales revenue in Western Europe, North America and greater China, excluding the exchange rate factor, Adidas expects global sales revenue to rise by 11% to 13% in 2017.

Global gross profit margin is expected to rise 0.5 percentage points to 49.1% (2016: 48.6%).

This is mainly due to the further optimization of brand's more appropriate pricing, product and regional combination and company channel combination.

However, the decline in the US dollar hedging rate in the first half of this year has led to an increase in procurement costs in the Asian region and a rise in labor expenditure, which partly offset the above advantages.

The company's operating profit margin is expected to rise by 0.6-0.8 percentage points to 8.3%-8.5% (2016: 7.7%), which reflects the global gross profit margin is expected to grow, while the other operating expenses as a percentage of total sales revenue is expected to decline.

Therefore,

Profits are expected to grow by 18%-20%, and net income from continuing operations is expected to rise by 18%-20% to 12-12.25 billion (2016: 1 billion 19 million euros).

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