Reebok 2008 Annual Report Download - page 18

Looking at the adidas brand development, you already talked about the major
sporting events. But that can’t be the full story. What else drove the brand’s
performance in 2008?
Every year we set ambitious targets for the adidas brand and major events are
just one part of that. In 2008, the brand shifted up a gear and our results refl ect
the broad-based strength we enjoy today across all categories. Sales grew by 14 %
currency-neutral and the adidas gross margin marked an all-time high at 48.6 %,
while operating margin increased to a record 14.0 %. adidas is all about perfor-
mance and helping consumers to achieve their own personal
“impossible” goals. We bring this to life every day by launch-
ing key product innovations such as the new generation of
adiZero ™ running shoes or our high- performance TECHFIT ™
apparel initiatives. And the result is clear. In addition to foot-
ball, adidas’ other key performance categories running, training and basketball
scored double-digit rate sales increases in 2008. And our Sport Style division also
fi nished the year up 10 % currency-neutral, as our products continue to generate
a buzz in the sports-inspired lifestyle market.
adidas has made good progress in recent years. Can you explain what the brand
will focus on to keep momentum going?
Over the last four years, adidas sales have advanced at an average currency-
neutral growth rate of 13 %. That fi gure alone illustrates the desirability of the
brand and the bond we have built with consumers all over the world. In 2009,
although adidas may be celebrating its 60 th anniversary, I can assure you this
great brand is nowhere near retirement age. We are in the midst of a step change
in our industry. The age of personalisation will radically transform what it means
to be a consumer goods company. We will focus even more on the consumer
– acknowledging that today’s world is neither about mass products nor mass
marketing anymore. It is about building relationships with the individual. By
understanding consumers’ buying habits, their fi tness level, their motivations for
doing sport, their goals for the season or the next race, or even the next party – we
can create more meaningful products, services and experiences that build a last-
ing impression beyond product, price and promotion. Programmes like miCoach,
mi Performance, miTeam and mi Originals, or collections like the adidas SLVR
Label and adidas Style Essentials already make us the standout leader in this
respect. With this in mind, I have no doubt that our consumers and retail partners
will continue to embrace adidas like no other brand. And we have the right formula
to create long-lasting momentum for the brand also for the next sixty years.
014 To Our Shareholders Interview with the CEO