Adidas'S Second Quarter Earnings Report, Greater China Ten Consecutive Quarter 20% Growth

On the evening of August 9th, Adidas, the German sportswear company, announced a stronger second quarter earnings report.

During the period, income excluding exchange rate increased by 10%.

In Euro terms, revenue grew by 3% to 10 billion 809 million euros in the first half of 2018 and 10 billion 485 million euros in the same period in 2017.

Thanks to more optimized pricing and channel combinations, gross margins increased by 2.2 percentage points to 52.3%, operating margins increased 1.2 percentage points to 11.3%, and net income from continuing operations increased by 20% to 418 million euros.

Excluding the exchange rate factors in the second quarter of 2018,

Global sales increased by 10%.

Among them, Adidas brand revenue increased by 12%, mainly due to the two digit sales growth in the series of sports performance, including two digit growth in training category, running category and football category. In addition, the high digit growth of the sports fashion series is also crucial to Adidas's brand revenue growth.

Reebok's brand revenue declined by 3%, mainly due to the decline in sales of training series and running series, which offset the growth of the classic series.

From the point of view of the channel, the wholesale channel revenue in the second quarter achieved a high single digit growth, and the retail channel revenue achieved two digit growth. Among them, the electricity supplier business performance was particularly prominent, recorded a 26% revenue growth.

According to the euro, global sales increased by 4% to 5 billion 261 million euros in the second quarter of 2018 (2017: 5 billion 38 million euros).

In the second quarter of 2018, Adidas and

The combined sales of the two brands increased in almost all markets.

Sales growth of the two brands in the North American market and the Asia Pacific market is particularly strong: the growth of the North American market is 16% and the Asia Pacific market is 19%, of which the growth of the Asia Pacific market is mainly due to the sales growth of 27% in the Greater China region.

The Latin American market and the Russian / CIS market achieved 15% and 14% of the two digit revenue growth respectively.

Excluding exchange rate factors, revenue growth in emerging markets increased by 1%, while Western European market income remained unchanged from last year, which is in line with the market's expectations.

In the second quarter of 2018, sales in Adidas Greater China increased by 27%. So far, the Greater China region has recorded more than 20% sales growth for ten consecutive quarters.

Thanks to the promotion of Greater China, excluding the exchange rate factor, the Asia Pacific market recorded an increase of 19%.

(since January 1, 2018, Adidas has integrated the four countries / regions of Greater China, Japan, Korea and Southeast Asia / Pacific into a unified Asia Pacific market.

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