Reebok 2007 Annual Report Download - page 125

121
ANNUAL REPORT 2007 --- adidas Group
03
MID-SINGLE-DIGIT SALES INCREASE EXPECTED AT
TAYLORMADE- ADIDAS GOLF We expect our strong product
pipeline to help increase currency-neutral TaylorMade-
adidas Golf sales at a mid-single-digit rate in 2008. Growth
will mainly be driven by new product launches including
TaylorMade metal woods and irons as well as adidas Golf
footwear and apparel.
Because the order profi le in golf differs from other parts of
our Group’s business, we do not provide order in for mation for
TaylorMade-adidas Golf. However, trade show performance
and ongoing dialog with customers both support our expecta-
tion of con tinued positive development in the segment.
LOW- TO MID-SINGLE-DIGIT SALES INCREASE EXPECTED
FOR REEBOK SEGMENT Currency-neutral Reebok segment
sales are projected to grow at a low- to mid-single-digit
rate in 2008. Sales are expected to increase at Reebok, Reebok-
CCM Hockey and Rockport. At brand Reebok, we continue to
focus on improving the brand’s position in performance sports.
This effort will be driven by several product launches in Reebok’s
running and women’s categories.  see Reebok Products and Campaigns,
p. 138 In addition, product launches in American sports will
highlight additional focus on the key North American market.
Our efforts to broaden the brand’s lifestyle offering will also
become more visible. We anticipate a positive sales
development at Reebok-CCM Hockey and Rockport, supported
by the launch of new product lines. Retailer and trade show
feedback, especially in emerging markets, supports Reebok’s
2008 growth expectations.
REEBOK BACKLOGS DECLINE Currency-neutral Reebok back-
logs at the end of 2007 were down 8 % versus the prior year
on a currency-neutral basis. In euro terms, this represents a
decline of 14 %. Footwear backlogs decreased 12 % in currency-
neutral terms (– 18 % in euros). This is the result of lower
orders from mall-based retailers in North America scheduled
for delivery in the fi rst half of 2008. Apparel backlogs grew by 3 %
on a currency-neutral basis (– 3 % in euros). Hardware backlogs
declined at a double- digit rate due to decreases in the hockey
category. Backlogs at Reebok, however, are expected to
improve over the course of the year due to an improved prod-
uct mix and the launch of the “Your Move” brand campaign.
REEBOK ORDER BACKLOGS (IN €) 1)
Development by product cate
g
ory and re
g
ion in
%
North
Europe America Asia
T
ota
l
Footwear
Apparel
To
t
al
2
)
1) At year-end, change year-over-year.
2) Includes hardware backlogs
.
North
Europe America Asia
To
t
al
Footwear
Apparel
T
ota
l
2
)
1
)
At year-end, chan
g
e year-over-year.
2
)
Includes hardware backlogs
.
9 (30) 6
(
1
2
2)
(13) 19 20
3
3
(1) (20) 12 (8
8)
2
0)
)
6 (36) (0)
(
18
)
(16) 8 14
(
3
)
(4) (27) 5 (14
)
)
)
REEBOK ORDER BACKLOGS (CURRENCY-NEUTRAL) 1)
Development by product cate
g
ory and re
g
ion in
%
REEBOK 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
5
0
(
5
)
(
10
)
(
15
)
1
)
Chan
g
e year-over-year
.
()
(
14
)
()
(
13
)
()
(
14
)
()
(
12
)
3
()
(
0
)
()
(
2
)
()
(
8
)