Reebok 2007 Annual Report Download - page 101

097
ANNUAL REPORT 2007 --- adidas Group
03
SPORT STYLE INCREASES 3 % ON A CURRENCY-NEUTRAL
BASIS Sales in the Sport Style division increased 3 % on a
currency-neutral basis in 2007. Sales in Originals increased
moderately compared to the prior year. While revenues in the
Metropolitan category declined, sales in the Urban and Coastal
categories increased. Y-3 and the launch of Porsche Design also
contrib uted to divisional growth. In euro terms, Sport Style sales
declined 1 % to € 1.455 billion in 2007 (2006: € 1.470 billion).
CURRENCY-NEUTRAL ADIDAS SALES GROW IN ALL REGIONS
In 2007, adidas sales increased in all regions on a currency-
neutral basis. Revenues in Europe grew 8 %. Strong performance
in the region’s emerging markets, in particular Russia, was the
primary driver of this development. Currency-neutral adidas
sales in North America increased 5 %. Revenues grew in both
the USA and Canada. adidas sales in Asia improved 17 % on
a currency-neutral basis, due to double-digit increases in all
major markets except Japan. Sales growth in China was par-
ticularly strong. In Latin America, sales grew 39 %, again making
it the fastest-growing region within the adidas segment. All mar-
kets in this region grew at double-digit rates. Currency trans-
lation effects negatively impacted sales in euro terms in all
regions. Sales in Europe grew 7 % in euro terms to € 3.526 bil-
lion in 2007 from € 3.302 billion in 2006. Revenues in North
America decreased 3 % to € 1.275 billion in 2007 from € 1.321 bil-
lion in 2006. Sales in Asia increased 11 % to € 1.703 billion in
2007 from € 1.538 billion in 2006, and revenues in Latin America
improved 34 % to € 568 million in 2007 versus € 425 million
in the prior year.
ADIDAS 2007 NET SALES BY REGION
ADIDAS 2007 OWN-RETAIL SALES BY CHANNEL
2007 2006
To
t
al
1
,00
3
875
ADIDAS OWN-RETAIL STORES
F
actory Outlets
3
1
7
Originals Concept Stores 83
I
nt
e
rn
e
t
2
Concession Corners 142
S
port Performance
C
oncept
S
tores 4
59
CURRENCY-NEUTRAL OWN-RETAIL SALES UP 28 % In 2007,
own-retail sales increased 28 % on a currency-neutral basis.
In euro terms, revenues grew 22 % to € 1.229 billion from
€ 1.009 billion in 2006. This increase was driven by new store
openings and mid-single-digit increases in comparable store
sales. adidas own-retail activities made up 17 % of brand sales
in 2007, up from 15 % in the prior year. The store base at the
end of 2007 comprised 542 concept stores, 317 factory outlets
and 142 concession corners. During the year, adidas opened
128 concept stores and 61 factory outlets. The majority of new
stores were opened in emerging markets with under-developed
retail infrastructure. The number of concession corners was
61 below the prior year, mainly due to the transfer of concession
corners in the Philippines to a distributor. Major openings
in 2007 included Sport Performance Concept Stores in Beijing,
Buenos Aires and Istanbul as well as Originals Concept Stores
in Shanghai, Montreal and Liverpool.
Latin America
8
%
Internet 1
%
North
America 18
%
Concession Corners
4 %
4%
Asia 24
%
Sport Performance
Concept Stores
4
1 %
Originals
Concept Stores
5
%
5
0
%
Europe
4
9
%
Factory Outlets
3
56
58
2
203
256