Reebok 2007 Annual Report Download - page 124

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ANNUAL REPORT 2007 --- adidas Group GROUP MANAGEMENT REPORT – OUR FINANCIAL YEAR - Outlook
ADIDAS GROUP SALES TO EXCEED ECONOMIC GROWTH RATES
Based on our strength in innovation, operational execution and
regional diversifi cation, we are confi dent that the Group’s net
sales increase in 2008 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 sporting goods
industry. Sales in Asia and Latin America are expected to grow
at double-digit rates due to our strong brand recognition and
growing distribution infrastructure. This increase is forecasted
to exceed both economic and industry growth rates. Mid- to
high-single-digit growth rates are expected in Europe, posi-
tively impacted by the UEFA EURO 2008™. This expectation
exceeds projected growth rates for both the economy and the
industry in this region. Sales in North America, however, are
projected to decline modestly as a result of the challenging
market environment and intensifi ed retail competition. This
development is likely to be in line with sector development in
the region.
ADIDAS ORDER BACKLOGS (CURRENCY-NEUTRAL) 1)
Development by product cate
g
ory and re
g
ion in
%
ADIDAS ORDER BACKLOGS (IN €) 1)
Development by product category and region in
%
North
Europe America Asia
T
ota
l
l
Footwear
Apparel
To
t
al
2
)
1
) At year-end, change year-over-year.
2
) Includes hardware backlo
g
s
.
North
Europe America Asia
T
o
t
al
l
Footwear
Apparel
T
ota
l
2
)
1)
At year-end, chan
g
e year-over-year.
2)
Includes hardware backlo
g
s
.
14 (5) 29
13
20 4 30 2
0
18 (2) 28 17
)
11 (14) 22
8
17 (6) 23
15
15 (11) 22 12
)
ADIDAS ORDER BACKLOGS (CURRENCY-NEUTRAL) 1)
Develo
p
ment by
q
uarter in
%
Q1 / 06 Q2 / 06 Q3 / 06 Q4 / 06 Q1 / 07 Q2 / 07 Q3 / 07 Q4 / 07
20
15
10
5
0
1)
Chan
g
e year-over-year.
1
2
9
3
1
7
9
16
1
7
HIGH-SINGLE-DIGIT SALES INCREASE EXPECTED AT BRAND
ADIDAS We project high-single-digit currency-neutral sales
growth for brand adidas in 2008. Both the adidas Sport
Performance and adidas Sport Style divisions are forecasted
to grow. In the Sport Performance division, we expect football
to be one of the fastest-growing category in 2008. As Offi cial
Sponsor of the UEFA EURO 2008™, adidas will benefi t from
this event in terms of additional sales of football products.
In addition, we expect strong improvements in the Sport
Performance running, training and basketball categories,
supported by a compelling pipeline of product launches.
Strong order backlogs and positive retailer and trade show
feedback as well as expected further own-retail expansion,
for which order backlogs are not included in the order book,
support our ambitious growth expectations for 2008.
ADIDAS BACKLOGS GROW STRONGLY Backlogs for the adidas
brand at the end of 2007 increased 17 % versus the prior year
on a currency-neutral basis. This improvement was supported
by adidas’ strength in all major categories. Order backlogs in
Europe were positively impacted by orders for UEFA EURO
2008™ related products. In euro terms, adidas backlogs grew
12 %. Footwear backlogs increased 13 % in currency-neutral
terms (+ 8 % in euros). Double-digit growth in both Asia and
Europe more than offset a decline in North America. Apparel
backlogs grew 20 % on a currency-neutral basis (+ 15 % in
euros), driven by strong double-digit increases in Asia and
Europe. Hardware backlogs grew at a double-digit rate due to
increases in Asia and Europe.