The adidas Group released its First Half Results 2011 yesterday and announced record sales of 6.3 billion euro on a currency-neutral basis for this period. Currency-neutral!? I personally think that finance-talk can be quite confusing and complicated at times. So, let me try and summarize yesterday’s highlights in a simpler way.
It’s all about good news this time
With record sales of 552 million euro Greater China was our star performer so far this year. However, all regions are growing.
Just like all regions, all brands are significantly growing, too. TaylorMade-adidas Golf, the jewel of the golf industry, does in particular well. The brand is currently outmanoeuvring the competition on all fronts. This is especially noteworthy as the golf-market itself is currently rather stagnating. Go, TMaG, go!
As the first half 2011 results have been much better than previously expected, the management of the adidas Group increased the full year 2011 sales and earnings guidance. According to Bloomberg, an analyst valued the outlook “more bullish”. Reuters quotes a trader saying that “it’s certainly a good sign when a company raises its outlook in the current financial climate”. The newsagency refers to the difficult stock-market conditions. Various currencies have been weakening versus the euro, which negatively impacts the adidas Group’s financial results in the short term.
Another challenge are the constantly rising commodity prices, which bother the entire sporting goods industry. However, according to the German newspaper Handelsblatt the adidas Group is mastering this challenge best at the moment.
“The spirit of Japanese to recover from the disaster is inspiring”
What is good to hear is that our business in Japan has shown considerable resilience declining only 1% in the second quarter. Originally, much more decrease had been expected following the earthquake and tsunami there earlier this year. Our CEO Herbert Hainer said in his speech to media and investors: “the spirit of Japanese to recover from the disaster is inspiring”.
Watch out, there’s more to come
In the second half of the remaining year, there is still quite a bit to come. First of all there are the IAAF World Championships in Korea. The championships will serve us as a platform to push off our next wave in light weight running, the adizero feather. Later this year we will begin our build up to UEFA EURO 2012™. And in Originals, we just introduced a first-of-its-kind iPhone App to our industry today. It will change the way consumers shop for our brand (find a here a video and here a review).
All this gives us quite something to look forward to in the second half of the year. We’ll keep you posted. Our next result presentation will be 03. November 2011 (see a list of all Corporate events here).