Sales fall across the board at adidas
06/11/2009
During the third quarter of 2009, adidas group sales fell 7% on a currency-neutral basis. Revenues for the adidas segment decreased 6%, with growth in the sport style division unable to offset declines in major sports categories in the sport performance division. Currency-neutral revenues in the Reebok segment dropped 12% year-on-year with declines in all divisions. Third quarter revenues for the TaylorMade-adidas Golf segment also fell12%.
Group revenues fell 6% in euro terms to €2.9 billion during the third quarter compared with €3.1 billion during the same period in 2008. Group gross profit fell 14% to €1.3 billion compared with €1.5 billion.
“This year, our industry and our group have faced unprecedented challenges. However, we have tackled the challenges head-on,” commented Herbert Hainer, adidas group CEO. “We have successfully adapted to our difficult surroundings. And our drive for operational excellence has meant we have strongly improved our financial position generating almost € 740 million in net cash from operations over the last six months.”
Group sales are expected to decline at a low- to mid-single-digit rate on a currency-neutral basis in 2009. Sales development will be negatively impacted by weaker consumer demand as a result of unemployment and a loss in consumer confidence.
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