All in growth
Adidas Profit Up 38%
Adidas AG, the German manufacturer of sportswear and equipment, raised its forecast for the year after earnings in the 1 quarter exceeded the consensus forecast of analysts.
However, the company warned that violations at the Reebok India Company may put slight pressure on profits.
In a preliminary report, Adidas reported an increase in net profit of 38% to 289 million euros in the 1 quarter, mainly due to stronger than expected growth in China and Japan, as well as increased sales of the TaylorMade-adidas Golf division. Moreover, the company said it had benefited from lower costs and tax rates. The profit margin far exceeded the average forecast of analysts polled by the Dow Jones at 237 million euros.
The group's operating profit in the 1 quarter increased by 30% to 409 million euros, while revenue increased by 14% to 3,8 billion euros at constant exchange rates, which is higher than expected in the amount of 3,64 billion euros.
Adidas, the world's second-largest sportswear manufacturer after Nike Inc., raised its forecast by saying net profit is likely to rise by 12-17% in 2012 year over the previous forecast for growth by 10-15%. The group’s sales growth is projected at approximately 10% with constant exchange rates against growth in the 5-9% range.
However, Adidas gross margin declined for the third quarter in a row - to 47,7% from 48,4% in the 1 quarter of 2011.
The rising cost of production factors — cotton, rubber, and labor costs in China — also put pressure on Adidas rivals' margins. Last week, Puma SE (PUM.XE) reported a drop in gross margin to 51,2% from 52,4% in the 1 quarter due to price pressures from production factors.
In terms of sales promotion, Adidas is betting on major sporting events in the 2012 year, such as the London Olympics and the European Football Championship. The company also expects to benefit from the strong influence of booming markets, where revenue growth drives demand for branded goods and clothing.
The company also said that violations at the Reebok India Company are likely to translate into additional pre-tax expenses of up to 125 million euros and may require a review of financial statements from last year.
“Management is reassuring stakeholders that it has actively followed and will continue to pursue the group's advocacy course, which has already led to the appointment of a new local management team in India at the end of March,” Adidas said.
The company also said it would continue to restructure its operations in India by changing business practices, which could lead to additional one-time costs of 70 million euros.
Over the past year, Adidas shares added about 18%, showing better dynamics than the Stoxx Consumer Goods index, which scored 0,1%, asiareport.ru reports.
Adidas Profits Up 38% German sportswear and equipment maker Adidas AG raised its full-year outlook after first-quarter earnings beat consensus ...
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Salvatore Ferragamo's Shoes Inspire Pastry Chefs
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How Pareto's Law Works in a Shoe Retail Store
Analysis of the company's performance is an important quality of a manager. Many indicators in the retail business are subject to analysis, primarily - sales planning and inventory balances, KPI performance by employees, the effectiveness of marketing campaigns, the number of sellers, their work schedules and many other factors that affect the final result of the store. In this material, SR expert on increasing sales in shoe retail Evgeny Danchev, using the Pareto principle, understands the reasons why revenue and volumes of goods sold are distributed very unevenly between weekdays and weekends. The author is confident that the Pareto principle is indispensable in the systemic analysis of sales management efficiency and sales results. But it is important to apply it correctly and interpret its meaning.
Main trend themes for footwear and bags collections for the fall-winter 2025/26 season
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Euro Shoes@CAF will be held in Almaty from March 10 to 12
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New brand in the SOHO FASHION portfolio – BEVERLY HILLS POLO CLUB
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The 35th Euro Shoes exhibition took place in Moscow!
Last week, the 35th international exhibition of footwear and accessories Euro Shoes Premiere Collection took place in Moscow. The four days of the event were intense and productive. Euro Shoes organizers noted an increase in the number of visitors to the exhibition compared to the previous edition in 2024.
Euro Shoes – on a new premium platform!
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Clarks: 200 years of quality, style and innovation
In 2025, the legendary British brand Clarks celebrates its 200th anniversary – an impressive milestone that demonstrates its enduring relevance, impeccable quality and global appeal.recognition of the brand. Since its foundation in 1825, the company has not only created shoes, but also set the standards for comfort and style, remaining a symbol of British craftsmanship and innovation.
The cyclicality of fashion and its impact on the financial results of the fashion business
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How to preserve a retail business in the fashion market in the era of marketplace hegemony?
The fashion segment has become the leader in e-commerce on the Russian market in the last few years. And, of course, this trend has affected the financial results of offline retail stores, which have suffered significant losses in revenue and profit. Not every retail business can withstand price wars with marketplaces, and with each new sales season, the fight for customers will only intensify. SR expert on increasing sales on the fashion market Evgeny Danchev talks about what can be done in such a tough situation and what effective strategies to use to save a retail business.
Shoe factories in Russia are closing one after another
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Heading towards Moscow - development of the MASCOTTE chain in a new concept
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Sales through marketplaces. Growth points and pitfalls
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Trade equipment in a modern shoe and accessories store
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What decorative items can be used as retail equipment to effectively present shoes and bags?
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Global footwear production down by 1,5 billion pairs in 2023
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We are waiting for you at the Euro Shoes exhibition on August 26-29
The international exhibition of footwear and accessories Euro Shoes premiere collection starts in Moscow next Monday. Euro Shoes will be held in the capital's Expo Center from August 26 to 29 in alliance with the leading international clothing exhibition CPM Moscow. In one place and on the same dates, both exhibitions will bring together a large number of visitors, buyers and fashion industry professionals from Russia and the CIS countries.
MUNZ Group: Five common mistakes when searching for line personnel
Mistakes in personnel selection are costly for companies. The time spent on searching, the investment of money in organizing recruitment and the lack of salespeople in the store increase the value of each correctly selected employee and increase the cost of an error. Munz Group HR Director Ekaterina Ananenkova talks about the most common mistakes.
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Shoe educational program: what shoe soles are made of
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How to set prices that will earn
Some businessmen still confuse the concept of margin with the concept of trade margins and set prices for their goods, guided solely by the example of competitors. No wonder they go broke! Analyst at the Academy of Retail Technologies Maxim Gorshkov gives several tips and formulas with which you can set not only ruinous, but also profitable prices.
Sales of shoes and accessories: effective techniques for business rhetoric
Which speech modules are effective in communicating with potential and current customers of shoe stores, and which are not, Anna Bocharova, a business consultant, knows.
We form the salary of sellers: expert advice
“How do you charge your consultants for personal or general sales?” Is one of the most popular questions causing a lot of controversy and gossip on the online forums of retail business owners. Indeed, how to properly form the earnings of sellers? But what about bonuses, where to get a sales plan from, do employees allow them to buy goods at discounted stores? In search of truth, the Shoes Report turned to a dozen shoe retailers, but no company wanted to disclose its motivation system - the process of its development was too complicated and individual. Then we asked four business consultants, and finally became convinced that the topic of seller motivation is very complex, because even our experts could not come to a common opinion.
Technology Selling Issues
There is nothing worse than meeting the buyer with the words “Hello, can I help you with something?”, Because the seller works in the store just to help. Criticizing this well-established pattern of communication with the buyer, Andrei Chirkarev, business coach for effective sales and the founder of the New Economy project, shares the technology of truly selling issues with readers of Shoes Report.
The whole truth about Bayer. Who is he and how to become one?
Bayer is no longer a new, but still a popular and sought-after profession. It’s fashionable to be a buyer. Buyers are at the origins of the emergence and development of trends. If the designer offers his vision of fashion in the season, then the buyer selects the most interesting commercial ideas. It is on buyers that the policy of sales of stores and what, in the end, the buyer will wear depends on. This profession is surrounded by a magical fleur, often associated with a lack of understanding of what exactly is the work of a buyer.
Fur, and not only: types of lining
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The best models of Czech shoes of the past
In Soviet times, for shoes from Czechoslovakia sold under the Cebo brand, customers stood in line for four hours and did not regret it, because Czech shoes were considered to be of high quality, comfortable and fashionable. Shoe designer Juraj Shushka shared a photo archive of his collection with Shoes Report magazine, which contains the most interesting Cebo models from the 1940's to the 1980's.
Retail Arithmetic
Before you begin to solve specific problems, you need to find out how accurately all the leaders of your company understand the basic terminology of retail.
How to fire a worker without tears, scandal and trial
Sooner or later, any manager is faced with the need to part with an employee. Properly and on time the dismissal procedure will save the company money, and the boss himself - nerves and time. But why sometimes, knowing that a break in relations is inevitable, we put off the decision for months?
