Adidas's First Quarter Growth

Adidas AG, chief executive of Adidas group Herbert Hainer, said in a conference call of earnings analysts, the group was "very optimistic" about the whole year's prospects after a good start in the first quarter. The group maintained that this year's sales grew by a median of fixed rate, median net profit growth of 7%-10% and operating profit margin of 6.5%-7.0%.

Adidas AG (ADSGn.DE) Adidas group, the world's second largest sporting goods manufacturer, was boosted by the rebound in the North American market and the strong growth of running and fashion street products. The first quarter sales recorded an expected growth of 17.3%. However, due to a total write down of 18 million euros in the Latin American market and Russia, the net profit of 221 million euros (up 8.2%) rose to less than 232 million euros expected by the market.

In the first quarter of March 31, 2015, Adidas AG sales rose to 4 billion 83 million euros from 3 billion 480 million euros in the same period last year, better than the 3 billion 913 million euros forecast for the first quarter, and 9% after the impact of the exchange rate in the first quarter of March 31, 2015. Retail sales rose by 14% after the impact of the exchange rate, but the same store sales increased by 4%, slowing sharply from 9% in the four quarter.

According to brand, Adidas Adidas brand sales rose 10.9% over the same period last year. Reebok Reebok growth increased sharply from 9% in the four quarter to 9%, while TaylorMade-adidas Golf also improved, narrowing from 8.6% in the four quarter to 24.2% in the same period.

The North American market benefited from the revival of the Reebok Reebok brand. In the first quarter, sales resumed growth, showing an increase of 7%. In the four quarter, however, there was a 4.2% decline in the region. However, sales of 591 million euros and about 655 million US dollars were still far behind that of the second major sports brands of the United States and the Under Armour Inc. (NYSE:UA), a rival from the United States. Largest market Western Europe Sales increased by 11.5% to 1 billion 143 million euros per year. Sales in the Greater China region increased by 21.4% to 597 million euros under the impetus of double-digit growth of Adidas, Adidas and Reebok, Reebok and Reebok. Latin America, Japan and MEAA (Middle East, Africa and other parts of Asia) recorded an increase of 6%, 7% and 10% respectively. Russia The federal territory dropped by 3%.

Bryan Garnier & Co. analyst Cedric Rossi It is pointed out that the quarterly performance of Adidas Adidas AG is enough to deal with investors, but the pressure on management is still there, though it is not as heavy as last year's group's fall. Herbert Hainer, the chief executive, who was under pressure for a bad performance, renewed his contract with the group last 2017 until he seemed to be willing to leave after being filled. But at the same time, the group has officially sought new CEO.

Adidas AG, Adidas group, released the new 5 year plan as of 2020 in March. In the plan, the group hopes that the average annual sales growth will reach a high digits in the next 5 years, an annual increase of 15% in net profit and a dividend increase of 30%-50%. The group hopes to focus on Losangeles, New York, London, Paris, Shanghai and Tokyo in 6 major cities, active control over sales space, reduced delivery date, increased customized services and multi-channel development, reaching 22 billion euros in 2020, increasing 60% on the basis of 14 billion 534 million euros in the previous fiscal year.