Reebok 2006 Annual Report Download - page 113

Emerging Markets to Drive adidas Group Sales
Based on our strength in innovation, operational excellence
and regional diversification, we are confident that the Group’s
net sales increase in 2007 will again exceed growth rates of
the global economy. We also expect Group sales growth to
be at least in line with the overall development of the sport-
ing goods sector. Revenues will grow in all regions, yielding
another record year in sales. In particular, sales in Asia and
Latin America are expected to grow at double-digit rates in
currency-neutral terms, above both economic and industry
development, due to our strong brand recognition and grow-
ing distribution infrastructure. Low-single-digit growth rates
are expected in Europe and North America due to difficult
comparables, slower economic development and intensified
competition at retail.
Stronger Sales Momentum in Second Half of 2007
We expect revenue growth to be weighted towards the second
half of 2007 owing to difficult comparisons in the first half of
the year. This is a result of the strong growth in all regions
in the prior year and the positive sales impact from adidas’
strong presence around the 2006 FIFA World Cup™. Growth
rates in the second half of 2007 are expected to accelerate,
driven by our product launch schedule.
Mid-Single-Digit Sales Growth Expected at Brand adidas
We project mid-single-digit currency-neutral sales growth for
adidas in 2007. All three adidas divisions are expected to grow
with the strongest improvements anticipated in the Sport
Performance running, women’s and basketball categories,
supported by our fully-integrated “Impossible is Nothing”
brand campaign. We have a compelling pipeline of product
launches in running, including additions to our core adiStar,
SuperNova and Response families featuring our ForMotion™
technology as well as the next generation of our BOUNCE™
running shoes. We also expect substantial growth in our wom-
en’s business led by our collaboration with Stella McCartney
and the continued momentum of our Adilibria concept. We
will also launch our most innovative functional line of perfor-
mance apparel to date, the adidas TechFit™ Powerweb. For
Europe and North America, own-retail and at-once business,
which are not included in order backlogs, will be positive top-
line growth drivers. However, our new distribution policy in
the UK announced in 2006 to improve the positioning of our
product at retail will temper European development. In Asia,
we are again targeting significant sales growth for brand
adidas in 2007, mainly driven by strong increases in China,
Korea and Southeast Asia. In Latin America, year-end cus-
tomer feedback points to continued solid growth prospects
for 2007.
Product Brand Launch Date
adiStar ForMotion™ Control running shoe adidas January
adidas TechFit™ Powerweb
running and training apparel adidas January
Stella McCartney “Gym/Yoga”
apparel collection adidas March
adiStar ForMotion™ Cushion running shoe adidas June/July
Adilibria women’s training apparel adidas January/July
“Materials of the World”
Sport Heritage collection adidas October
Team Signature basketball shoe collection adidas November
UEFA EURO 2008™ national team
jerseys – home kit adidas November
UEFA EURO 2008™ Match Ball adidas December
PUMP Paris Trainer running shoe Reebok February
Scarlett “Hearts” Rbk footwear and
apparel collection Reebok April/July
Freestyle footwear and apparel collection Reebok March
Trinity KFS II running shoe Reebok July
HATANA women’s running shoe Reebok July
MLB Fan Gear apparel collection Reebok July
NFL Zero Degrees apparel collection Reebok September
ANSWER XI basketball shoe Reebok November
Rbk EDGE Uniform System™
hockey apparel Reebok-CCM Hockey January
Footwear collection featuring
adidas TORSION® system Rockport September
r7® SuperQuad driver TaylorMade-adidas Golf February
Burner® driver TaylorMade-adidas Golf February
POWERBAND
adidas Golf shoe TaylorMade-adidas Golf March
Maxfli Tour Fire golf ball TaylorMade-adidas Golf May
2007 Product Launch Schedule
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