Reebok 2009 Annual Report Download - page 142

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138 GROUP MANAGEMENT REPORT – FINANCIAL REVIEW BUSINESS PERFORMANCE BY SEGMENT Other Businesses Performance
Currency-neutral TaylorMade-adidas
Golf sales decline
In 2009, TaylorMade-adidas Golf revenues
decreased 2% on a currency-neutral
basis. This development was below initial
Management expectations of a low-
single-digit sales increase. Declines in all
major categories could not be offset by
the positive impact of Ashworth (con-
solidated since November 2008), which
contributed € 50 million to TaylorMade-
adidas Golf revenues in 2009. Currency
translation effects positively impacted
sales in euro terms. In 2009, TaylorMade-
adidas Golf revenues increased 2% to
€ 831 million from € 812 million in the
prior year.
Currency-neutral Rockport
sales decrease 8%
In 2009, Rockport revenues decreased
8% on a currency-neutral basis. Growth
in accessories was offset by declines in
footwear and apparel. Currency transla-
tion effects positively impacted sales in
euro terms. Revenues in the Rockport
segment decreased 5% to € 232 million
in 2009 from € 243 million in 2008.
Reebok-CCM Hockey sales decline 5%
on a currency-neutral basis
Currency-neutral Reebok-CCM Hockey
sales decreased 5% in 2009. This
develop ment was mainly due to lower
licensed apparel sales. Currency trans-
lation effects negatively impacted sales
in euro terms. Reebok-CCM Hockey
revenues decreased 6% to € 177 million
in 2009 from € 188 million in 2008.
Gross margin negatively impacted
by difficult pricing environment
Gross margin decreased 2.8 percentage
points to 39.4% in 2009 from 42.2% in
2008. This was mainly due to price repo-
sitioning initiatives at TaylorMade-adidas
Golf due to the negative golf market
development. As a result, gross profit
declined 7% to € 506 million in 2009
versus € 543 million in 2008.
N
°-
03
OTHER BUSINESSES NET SALES BY QUARTER
€ IN MILLIONS
Q1 2008
Q1 2009
Q2 2008
Q2 2009
Q3 2008
Q3 2009
Q4 2008
Q4 2009
285
294
336
359
347
322
318
308
N
°-
04
OTHER BUSINESSES NET SALES BY BRAND
14% Reebok-CCM
Hockey
3% Other centrally
managed brands
18% Rockport
65% TaylorMade-
adidas Golf
Operating costs as a percentage of
sales up 1.5 percentage points
Operating costs as a percentage of sales
increased 1.5 percentage points to 17.5%
(2008: 16.0%). Integration expenses of
€ 21 million and the non-recurrence
of a prior year book gain related to
the acquisition of Ashworth were the
primary drivers of this increase. In euro
terms, operating costs increased 9% to
€ 224 million in 2009 from € 206 million
in 2008.