Adidas still struggles with currency issues

Adidas released its figures for the 2013 financial year today. Overall sales in Euros were down by 3 percent to nearly €14.5 billion. In constant currencies, however, turnover was up by 3 percent. In Euros, wholesale was down by 5 percent to €9.1 billion, while retail improved by 2 percent to almost €3.5 billion. In the end, the results were satisfactory after a strong fourth quarter, despite the company issuing a profit warning in late 2013.

Currency Situation reduces Turnover

In Q4, the group’s turnover increased by 12 percent on a Euro basis, but Herbert Hainer, the Chief Executive who has just extended his contract until March 2017, said that the currency situation cost the Three Stripes 9 percentage points in turnover in the fourth quarter alone. Wholesale trade in Western Europe was up by 8 percent, mainly thanks to the good performance of the Reebok brand and a recovery in the golf category. Reebok’s sales went up by double figures in the region, while TaylorMade-Adidas Golf improved by 3 percent.

In constant currencies, sales increased in North America by 2 percent, but dropped by 6 percent  in Western Europe, notably because of declines in the U.K., Italy and Spain. Sales in that region reached €3.8 billion. China was up by 8 percent to €1.65 billion and the interesting Latin American market by 6 percent to €1.58 billion. In South and Central America, turnover even improved by 19 percent on a Euro basis.



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