Adidas exceeds €10 billion in sales
Germany-based adidas Group has reported revenues of €10.084 billion for 2006, 52% higher than the €6.636 billion posted for 2005. Sales, excluding Reebok, increased 14% to reach €7.548 billion from €6.636 billion in the prior year, representing the company’s highest organic growth within the last eight years.
The adidas segment was the main driver of sales growth in 2006, driven by increases in nearly all of its Sport Performance categories as well as double-digit growth in the Sport Heritage and Sport Style divisions. First-time consolidation of the Reebok segment added €2.473 billion to the group’s sales. Compared with the prior year, in which Reebok was not consolidated, this represented a decline of 9%.
At TaylorMade-adidas Golf, currency-neutral revenues increased 22% with solid growth in nearly all major product categories. The inclusion of the Greg Norman apparel business, which was acquired as part of the Reebok acquisition, also had a positive impact on sales. Excluding the Greg Norman apparel business, sales increased 13% to €6.626 billion in 2006 from €5.861 billion in 2005 and TaylorMade-adidas Golf sales grew 21% to €856 million from €709 million.
Sales improved in all regions with sales in Europe increasing 31% to €4.162 billion from €3.166 billion; sales in North America rising 107% to total €3.234 billion compared with €1.561 billion; sales in Asia increasing 33% to reach €2.02 billion from €1.523 billion; and sales in Latin America improving 56% to €499 million from €319 million. Excluding Reebok, sales grew 8% in
The group’s net income increased 14% to €496 million from €434 million in 2005, driven by the strong sales and the lower tax rate, which fell 2.3 percentage points to 31.4%.
For 2007, the company expects to increase at a mid-single-digit rate is forecasting revenue growth to be weighted towards the second half of 2007.
