Restructuring at adidas prompts positive results
During the fourth quarter of 2009, the adidas Group changed its organisational structure, dividing its operating activities into six segments: wholesale, retail, TaylorMade-adidas Golf, Rockport, Reebok-CCM Hockey and other centrally managed brands.
The results of the adidas and Reebok brands are now combined under wholesale and retail, while the results for TaylorMade-adidas Golf, Rockport and Reebok-CCM Hockey (the latter two were formerly part of the Reebok segment) as well as other centrally managed brands (formerly part of the adidas segment) are aggregated under other businesses.
Following the elimination of regional headquarters, the group has distinguished 17 markets, aggregated into six geographies: Western Europe, European emerging markets, North America, Greater China, other Asian markets and Latin America.
“Without question, 2009 was the most difficult year since I became CEO of the group,” commented Herbert Hainer, adidas Group CEO. “However, we rose to the challenge. Despite a 53% decline in operating profit, we generated a 141% increase in net cash from operations for a record €1.2 billion. This is definitely the outstanding achievement of the year and a credit to all the hard work and dedication of our employees.”
He added: “We emerge from the challenges of 2009 with a very healthy financial position and renewed optimism. And I am convinced that all our brands can capitalise on a rebounding consumer environment in the current year. When I look around the marketplace today, I do not see any other company with a product pipeline as compelling, original or technologically advanced as ours.”
