The golf division around TalorMade continues to weigh heavily on Adidas' results.

Adidas performs well, but struggles with currencies and golf

The golf division around TalorMade continues to weigh heavily on Adidas' results.

The golf division around TaylorMade continues to weigh heavily on Adidas’ results.

In constant currencies, the Adidas Group reports substantial growth in basically all regions and product categories but North America and golf for the third quarter ended Sept. 30. Group sales were up by 9 percent due to a strong development of own retail in the double digits and wholesale in the high single digits. In reported euros, however, the increase in revenues was 6 percent, year-on-year, to €4.12 billion.

By region, but against the background of currency effects, the Three Stripes gained momentum in emerging markets, such as Russia and the former Soviet republics where comp sales were up by 19 percent over the last year’s period. In western Europe sales improved by 10 percent thanks to good performance in Germany, France, Spain and the U.K., while business was down by 1 percent in North America. China was up by 13 percent in constant currencies, while growth was even stronger in the Latin American countries led by Argentina, Brazil and Mexico  (+16 percent).

By brand, Adidas was up by 12 percent thanks to soccer, running and Adidas Originals. Reebok improved by 7 percent. TaylorMade, on the other hand suffered with falling sales by 36 percent. Reebok-CMM Hockey and Rockport were up by 15 and 5 percent, respectively.

Gross margin was down by 1.9 percentage points to 47.4 percent due to currency effects, higher expenses for purchasing and stock clearing along with standard discounts, notably in Russia. Gross profit was up to €1.95 billion from €1.91 billion the previous year.

 

1 Comment to “Adidas performs well, but struggles with currencies and golf”

  1. In your estimation what are some of the reasons contributing to the 36 percent drop in Taylor Made sales?

    by John – on 27. July 2015, 20:24
    Reply

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