Reebok 2009 Annual Report Download - page 163

GROUP MANAGEMENT REPORT – FINANCIAL REVIEW Subsequent Events and Outlook 159
adidas Group sales development
expected to differ regionally
We expect Group currency-neutral
revenue development to differ regionally
in 2010. In Western Europe, we expect
a positive stimulus for Group revenues
from sales related to the 2010 FIFA World
Cup™. However, we believe macroeco-
nomic pressures on consumer spending
will continue to have an adverse effect on
Group sales development in this region.
In European Emerging Markets, the sta-
bilisation of the Russian rouble compared
to 2009, as well as gradual improvements
in underlying consumption trends in sev-
eral of the region’s markets are expected
to have a positive impact on Group sales
development. In North America, we
expect to benefit from our strong market
position in the emerging toning category.
However, ongoing high price sensitivity
among consumers as well as cautious
retailer buying habits are projected to
continue to weigh on Group sales growth
in this region. In Greater China, further
initiatives to manage inventory levels at
retail are expected to result in declin-
ing sales versus the prior year in the
first half of 2010. In the second half
year, Group revenues in this region are
forecasted to increase again. In Other
Asian Markets, overall macroeconomic
challenges in the Japanese market will
burden Group sales development while
the region’s emerging markets are
expected to perform robustly. Lastly, in
Latin America, the strong positioning of
our brands as well as positive impetus
from sales associated with the 2010 FIFA
World Cup™ are projected to result in
revenue growth for the Group in 2010.
Group gross margin to improve in 2010
In 2010, the adidas Group gross margin
is forecasted to increase to a level
between 46% and 47% (2009: 45.4%).
Improvements are expected in all
segments. Group gross margin will
benefit from lower levels of clearance
sales compared to the prior year. This will
be a result of a lower inventory position
at the beginning of 2010 compared to
the prior year. In addition, sourcing costs
are expected to decline compared to the
prior year as a result of reduced material
costs and lower capacity utilisation
among suppliers. However, these positive
effects are expected to be partly offset
by several negative impacts: Ongoing
price pressures from a highly competitive
retail environment, in particular in more
mature markets, are forecasted to have a
negative impact on Group gross margin.
In addition, hedging terms in 2010 will
be less favourable compared to the
prior year. Finally, the recent increase
of import duties in Latin America is
projected to negatively affect Group gross
margin.
N °-
01
MAJOR 2010 PRODUCT LAUNCHES
Product Brand Launch Month
adiPURE™ football boot adidas January
STAR WARS™ Originals line adidas January
Supernova™ GLIDE running shoe adidas January
miCoach training system adidas January
adiSTAR® Salvation running shoe adidas January
adidas by Stella McCartney performance cycling collection adidas January
TECHFIT™ PowerWEB™ men’s training apparel adidas February
UEFA Champions League Finale ball and footwear package adidas March
TERREX outdoor apparel and footwear adidas March
SUPER TREKKING outdoor footwear adidas March
2010 FIFA World Cup™ package adidas March
F50 football boot adidas June
Supernova™ Sequence and Supernova™ Riot running shoes adidas June
Men’s and women’s Fluid training shoes adidas June
High Performance BOUNCE™ running shoe adidas August
adidas Basketball Team Signature collection adidas November
Training Day collection men’s training apparel Reebok January
Cirque du Soleil collection Reebok February
RunTone™ men’s footwear Reebok March
U-Form 4-Speed football cleat Reebok May
ZigEnergy and ZigFuel men’s footwear Reebok June
TrainTone™ women’s footwear Reebok June
Reebok | Emporio Armani footwear Reebok June
JUKARI Fit to Flex™ women’s footwear Reebok July
JumpTone™ men’s footwear Reebok July
Reebok | EA7 collection Reebok August
ZigSlash and ZigReenergize basketball footwear Reebok October
Burner® SuperFast driver and fairway woods TaylorMade January
Burner® W (women’s) golf ball TaylorMade February
R9™ SuperTri driver TaylorMade February
Rossa® Monza® Spider Vicino putter TaylorMade March
Burner® SuperLaunch irons TaylorMade April
Men’s FORMOTION™ apparel adidas Golf January
Men’s/women’s CLIMACOOL® apparel with soft-touch COOLMAX™ adidas Golf January
Men’s adiPURE™ apparel adidas Golf February
Women’s adiPURE™ apparel adidas Golf May
Men’s/women’s EZ-Tech Performance Ashworth September
Men’s/women’s Doeskin Outerwear Ashworth September
TruWALK men's and women’s footwear Rockport August
Reebok 11K skates Reebok Hockey January
CCM U+™ OCTOLIGHT stick CCM Hockey April
CCM U+™ PRO Protective CCM Hockey April