Adidas 2000 Annual Report Download - page 33

Footwear Division Sales Improve 13%
Net sales of footwear within the adidas-Salomon Group reached
c2.5 billion, up a strong c283 million or 13% on the previous
year. The contribution of the footwear division to total net sales
of the Group increased by 1.0 percentage points to 43%. This
confirms the strength of footwear in our business.
Apparel Sales Decline Slightly
Apparel sales, in contrast, were impacted by changing con-
sumer preferences and new competitors. Total apparel sales
reached c2.2 billion, which represents a decrease of 1% com-
pared to 1999. Apparel contributed 37% of total Group sales
in 2000, down 4.0 percentage points from the previous year.
Hardware Sales Top g1 billion
Sales in the hardware division, which come primarily from the
Salomon and TaylorMade brands, recorded strong growth, up
23% to c1.1 billion. This represents the first time our sales
have passed the c1 billion mark in this division and confirms
our position as the leading supplier of sporting hardware prod-
ucts, as measured by total net sales. Hardware sales now
contribute 20% of total Group sales.
Emerging Markets in Latin America and Asia
Achieve Highest Growth Rates
In terms of regional performance, Latin America delivered
the highest growth rate in 2000. The increase of 36% to
c171 million was driven primarily by outstanding performance
by brand adidas in Brazil, Colombia and Argentina. The
Salomon, TaylorMade and Mavic brands had only a minimal
presence in Latin America.
In Asia, sales grew 32%. Continued growth at adidas Japan,
in its first full year of sales, was the largest component of this
growth. TaylorMade-adidas Golf was also extremely successful
in the region, with sales up 97% as a result of continued growth
in Japan and the introduction of TaylorMade brand products in
Korea. All brands achieved more than 20% growth in the region.
In Europe, sales increased 5% and were therefore at the top
end of Management’s expectations for the year. Brand adidas
grew 3%, primarily as a result of strong performance in France,
Italy, Spain, Austria and Switzerland. The Salomon, TaylorMade
and Mavic brands performed solidly in Europe. TaylorMade-
adidas Golf prof ited from positive overall market development,
increasing sales by 14%. Salomon achieved excellent growth
rates with both summer and winter products, recording a 17%
increase in sales for the full year. And Mavic sales increased
22% following the successful introduction of their new wheel
component.
In North America, sales increased 4%. While adidas declined
1% as new product collections received mixed results, the
other brands all grew significantly. Salomon sales were up 18%
as a result of improved winter sales and an excellent outdoor
footwear offering. TaylorMade-adidas Golf recorded a 28%
increase in sales on the back of strong product innovations.
Without the positive currency effects, however, overall develop-
ment in the region would have been negative.
Management Discussion & Analysis 29 adidas-Salomon ANNUAL REPORT 2000
Net Sales by Division
(in %)
Apparel 37
Hardware 20
Footwear 43
adidas-Salomon Footwear Sales by Region
(euros in millions) Sales % of Total
Europe 1,096 44
North America 954 38
Asia 333 13
Latin America 120 5
Total* 2,515 100
* Difference in total due to HQ/Consolidation
adidas-Salomon Apparel Sales by Region
(euros in millions) Sales % of Total
Europe 1,293 59
North America 527 24
Asia 312 14
Latin America 41 0
Total* 2,175 100
* Difference in total due to HQ/Consolidation