Strong Start for adidas
adidas records strong start into the year FY 2017 outlook confirmed.
«We had a strong start into the year, with continued sales and earnings momentum. Our major brands adidas and Reebok as well as all of our key markets posted double-digit sales increases,» said adidas CEO Kasper Rorsted. «As consumer demand for our products was strong across the world, we were again able to significantly improve our profitability despite ongoing currency headwinds. Building on this performance, we are confirming our full-year guidance. We aim to deliver double-digit revenue growth and an over-proportionate profitability increase in 2017 yet again.»
adidas recorded a strong start into the year with currency-neutral revenues increasing 16%. This development reflects an 18% increase at brand adidas as well as a 13% increase at the Reebok brand. In euro terms, sales were up 19% in the first quarter to € 5.671 billion (2016: € 4.769 billion). Revenue growth at the adidas brand was driven by double-digit increases in the running and outdoor categories as well as at adidas Originals and adidas neo. The major drivers of the top-line improvement at Reebok were strong double-digit sales increases in the training category and in Classics. From a channel perspective, the company’s growth was particularly strong in eCommerce, where revenues grew 53% in Q1.
From a market segment perspective, on a currency-neutral basis, the combined sales of the adidas and Reebok brands grew in all market segments except Russia/CIS. Growth was particularly strong in North America (+31%), Greater China (+30%), Japan (+21%) and MEAA (+15%). In Western Europe and Latin America currency-neutral revenues increased 10% and 9%, respectively, despite difficult prior year comparisons resulting from the sell-in of UEFA EURO 2016 and Copa América related product.
Sales in Russia/CIS declined 10% as a result of the challenging consumer sentiment as well as additional store closures. Revenues in Other Businesses were up 4% on a currency-neutral basis driven by increases in Other centrally managed businesses as well as at TaylorMade-adidas Golf. Currency-neutral CCM Hockey sales were down, reflecting sales declines in the licensed apparel business in light of the upcoming transition of the existing NHL partnership to the adidas brand as well as lower revenues in the brand’s equipment business.