SALES INCREASE IN NEARLY ALL REGIONS
adidas Group sales
grew in all regions except North America in 2007. Group sales
in Europe grew 7 % on a currency-neutral basis as a result
of strong growth in the region’s emerging markets. In North
America, Group sales declined 2 % on a currency-neutral
basis
due to lower Reebok sales in the USA. Sales for the adidas
Group in Asia increased 18 % on a currency-neutral basis,
driven
by growth in China. In Latin America, sales grew 38 %
on a currency-neutral basis, with increases coming from all
of the region’s major markets.
Currency translation effects negatively impacted sales in euro terms in all regions. In euro terms, sales in Europe increased 5 % to € 4.369 billion in 2007 from € 4.162 billion in 2006. Sales in North America decreased 9 % to € 2.929 billion in 2007 from € 3.234 billion in the prior year. Revenues in Asia grew 12 % to € 2.254 billion in 2007 from € 2.020 billion in 2006. Sales in Latin America grew 32 % to € 657 million in 2007 from € 499 million in the prior year.
GROUP APPAREL SALES GROW STRONGLY
From a product
category
perspective, Group sales growth in the year was
largely driven by the apparel category. Currency-neutral footwear
sales
grew solidly and increased 5 % during the period.
Strong increases
in the adidas and TaylorMade-adidas Golf
segments were partly offset by declines in the Reebok segment.
Apparel sales grew 11 % on a currency-neutral basis.
Increases
in the adidas
and Reebok segments were partly offset
by a decrease
at TaylorMade-adidas Golf. In this segment,
increases
in adidas Golf apparel sales were more than offset
by negative impacts from the divestiture of the GNC wholesale
business. Currency-neutral hardware sales were stable compared
to the prior year. Increases at TaylorMade-adidas Golf
were offset by declines in the adidas and Reebok segments.
Currency translation effects negatively impacted sales in all product categories in euro terms. As a result, footwear sales in euros were virtually unchanged at € 4.751 billion in 2007 (2006: € 4.733 billion). Apparel sales in euro terms grew 6 % to € 4.365 billion in 2007 from € 4.105 billion in the prior year. Hardware sales in euros decreased 5 % to € 1.182 billion in 2007 from € 1.246 billion in 2006.
|
2007 NET SALES BY PRODUCT CATEGORY |
|
 |
NET SALES BY PRODUCT CATEGORY
€ in millions
| Footwear |
Apparel |
Hardware |
Total | |
| 2003 | 2,767 | 2,222 | 1,278 | 6,267 |
| 20041) |
2,620 |
2,462 |
778 |
5,860 |
| 20051) |
2,978 |
2,798 |
860 |
6,636 |
| 20062) |
4,733 |
4,105 |
1,246 |
10,084 |
| 2007 |
4,751 |
4,365 |
1,182 |
10,299 |
1) Figures reflect continuing operations as a result of the divestiture of the Salomon
business segment.
2) Including Reebok business segment from February 1, 2006 onwards.
Including Greg Norman apparel business from February 1, 2006 to November 30, 2006.
COST OF SALES DECLINES 3 %
Cost of sales is defined as the
amount we pay to third parties for expenses associated with
producing and delivering our products. Own-production expenses
at adidas and Reebok as well as assembling expenses at
TaylorMade-adidas Golf are also included in the Group’s cost
of sales. However, these expenses represent only a very
small portion of total cost of sales. In 2007, cost of sales was
€ 5.417 billion,
representing a decrease of 3 % from € 5.589 billion
in 2006, despite higher sourcing volumes compared to the
prior year. This improvement is the result of cost synergies from
the combination of adidas and Reebok sourcing activities. The
optimization of sourcing processes and efficiency gains within
our supply chain more than offset increasing
labor and raw
material costs.
