adidas is “Off to a fast start to 2008,” commented adidas AG Chairman and CEO Herbert Hainer. “At Reebok, we are progressing on plan to reposition the brand. As a group, we are stronger than ever before. Most importantly, group profitability has improved substantially.”
During the first quarter of 2008, adidas group sales increased 10% on a currency-neutral basis, driven by double-digit sales growth in the core adidas business and gains by the TaylorMade-adidas Golf segments. Revenues in the Reebok segment, however, declined. However, currency movements negatively impacted group sales in euro terms. Group revenues grew 3% in Euro terms to €2.621 billion in the first quarter of 2008 from € 2.538 billion in 2007.
In 2008, adidas expects that group sales shall increase at a high-single-digit rate on a currency-neutral basis, driven by growth at all brands. The adidas segment is projected to achieve high-single-digit currency-neutral sales growth in 2008. Revenues in the Reebok segment are expected to grow at a mid- to high-single-digit rate on a currency-neutral basis. The target was raised in March versus initial guidance due to the announced joint venture of Reebok and Vulcabras SA in Brazil and Paraguay. Since 1 April 2008, the joint venture has distributed Reebok footwear, apparel and accessories in these countries.
Hainer stated, “In 2008, we will reach new heights on both the top and bottom line. A summer of excitement is ahead of us. Our brands will be front and centre at the two major sporting events, the UEFA EURO 2008 and the Olympic Games. Despite a challenging market environment, we are optimistic we will achieve all our targets.”
