• Group Business Performance 
  • Economic and Sector Development 
  • Income Statement 
  • Balance Sheet and Cash Flow Statement 
  • Treasury 
  • Additional Disclosures 
• Business Performance by Segments 
• Risk and Opportunity Report 
• Subsequent Events 
• Outlook 

 

GROSS MARGIN in %
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.

 

GROSS PROFIT € in millions
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.

GROSS MARGIN INCREASES BY 2.8 PERCENTAGE POINTS
The gross margin of the adidas Group increased by 2.8 percentage points to 47.4 % in 2007 (2006: 44.6 %). This development exceeded Management’s initial expectation of a gross margin between 45 and 47 %. The non-recurrence of negative impacts from purchase price allocation in the Reebok segment, which in 2006 amounted to € 76 million, positively impacted gross margin development. Cost synergies resulting from the combination of adidas and Reebok sourcing activities as well as underlying improvements in all segments also contributed to this development. As a result, gross profit for the adidas Group rose 9 % in 2007 to reach € 4.882 billion versus € 4.495 billion in the prior year.

ROYALTY AND COMMISSION INCOME GROWS STRONGLY
Royalty and commission income for the adidas Group increased 20 % on a currency-neutral basis. Increased adidas and TaylorMade-adidas Golf sales through external licensees and higher average royalty rates at all brands were the main drivers of this increase. The consolidation of the month of January in the Reebok segment in 2007 also positively impacted this development. In euro terms, royalty and commission income increased by 14 % to € 102 million in 2007 from € 90 million in the prior year.

 

GROSS PROFIT BY QUARTER1) € in millions
1)	Including Reebok business segment from February 1, 2006 onwards. Including Greg Norman apparel business from February 1, 2006 to November 30, 2006