Reebok 2008 Annual Report Download - page 17

Herbert, the adidas Group reported a signifi cant earnings increase in 2008.
What were the key operational and fi nancial highlights for you in 2008?
When I look back at any year, there are two important factors I always examine
to evaluate our Group’s performance. Did we take our opportunities and have we
shaped our business for the future? I am proud to report that the adidas Group did
both of those things in 2008, setting new fi nancial records along the way.
We missed no opportunity to reinforce brand image and underline the per-
formance credentials of our brands, which can be clearly attested by powerful
performances at key sporting events. We raised standards throughout all facets
of our organisation, from concept creation right through to marketing and supply
chain execution. We continued to make forward-looking investments, and spent
almost € 400 million expanding our controlled space activities, consolidating
ware housing and upgrading our IT infrastructure. We brought talented people on
board, to strengthen our workforce. These measures highlight our consistency in
building the right platform to support our strategic goals.
Our fi nancial results speak for themselves. Group currency-neutral sales
grew 9 %.The strength of our product offering drove gross margin to a new all-
time record level of 48.7 %. As a result, the Group’s operating margin improved
considerably to 9.9 %. And net income increased 16 %, representing double-digit
earnings growth for the eighth consecutive year. As a result of our share buyback
programme, earnings per share jumped 20 %. This record performance is clearly
a testament to the underlying strengths of our business model – being global,
diversifi ed and consumer-focused.
Last year’s major sporting events were followed by billions of viewers all around
the world. You had high expectations – did you achieve your goals?
We approach major sporting events with the same goals as the athletes who take
part – bring your best game to the competition and strive for personal bests. And
that’s exactly what I believe we did in 2008. We clearly dominated the world’s
largest sporting events – the UEFA EURO 2008™ and the Beijing 2008 Olympic
Games.
The European Football Championship offered us the perfect stage to high-
light our position as the leader in the football category. And what more can you ask
for than an all-adidas fi nal between Spain and Germany? Eye-catching marketing
activities outside the stadiums gave fans and footballers on every level fi rst-hand
experience that we live and breathe football. We successfully launched and com-
mercialised an entire new line of footwear and apparel – adiPure. In its fi rst year
alone, this line has fl ourished and already notched up over half a million pairs in
sales. Leveraging events like this and our unrivalled commitment to innovation
has allowed us to grow adidas’ football business over 50 % in a mere four years.
And I can assure you, with the 2010 FIFA World Cup™ on the horizon, the best is
still to come.
At the Olympic Games, we brought home the message that adidas is the true
Olympic brand. Our award-winning campaign ‘Together in 2008 – Impossible is
Nothing’ captured the spirit of the Olympic Games and united the Chinese people,
the great event and our brand. During the Games, we provided fi rst-class service
and exciting products to more than 3,000 athletes in 27 out of the 28 Olympic
sports, making us the most visible brand around the event. As a result, we today
have a very close connection with the Chinese consumer. This I am sure will have
a long-term positive effect on our brand image in the Chinese market, helping us
sustain market leadership in one of the world’s most exciting economies.
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