Reebok 2010 Annual Report Download - page 181

Group Management Report – Financial Review Subsequent Events and Outlook 177
adidas Group sales expected
to grow in all regions
We expect Group currency-neutral
revenues to increase in all our regions
in 2011, however at varying growth
rates. In Western Europe, despite the
non-recurrence of the 2010 FIFA World
Cup which provided a positive stimulus
in the region in 2010, the gradual
improvement in the macroeconomic
environment will positively impact
sales development in this region,
albeit at a moderate level. Growth
in Central Europe is likely to offset
challenging conditions in the region’s
peripheral markets. In European
Emerging Markets, the expansion of
and increasing sophistication in our
own-retail activities as well as improving
wholesale conditions in some of the
region’s markets are forecasted to have
a positive influence on Group sales. In
North America, we expect to benefit from
continued momentum in particular with
the adidas and Reebok brands. This will
be driven by new product introductions
and product extensions. In Greater China,
following a sales decline in 2010, we
expect a return to strong growth in this
region in 2011. This will be driven by
more current levels of inventory as well
as the expansion of our retail footprint,
including the further roll-out of adidas
Originals and adidas NEO. In Other Asian
Markets, lacklustre consumer demand
in Japan will be more than offset by a
strong performance in the region’s other
markets such as South Korea and India.
Lastly, in Latin America, the strong
positioning of our brands is expected
to more than compensate for the
non-recurrence of the positive impetus
from sales associated with the 2010 FIFA
World Cup.
Group gross margin to be in a
range from 47.5% to 48.0%
In 2011, the adidas Group gross margin
is forecasted to be roughly in line with
the prior year, at a level between 47.5%
and 48.0% (2010: 47.8%). While we expect
gross margin in our Retail segment as
well as Other Businesses to improve,
gross margin in the Wholesale segment
is forecasted to decline. In 2011, Group
gross margin will benefit from positive
regional mix effects, as growth rates
in emerging markets are projected to
be above growth rates in more mature
markets. In addition, improvements in the
Retail segment as well as at the Reebok
brand will positively influence Group
gross margin development. However,
these positive effects will be offset by
several factors. In particular, sourcing
costs will increase significantly compared
to the prior year as a result of rising raw
material costs and capacity constraints.
In addition, hedging terms in 2011 will be
slightly less favourable compared to the
prior year.
Major 2011 product launches
Product Brand
adilibria and Techfit women’s training apparel adidas
adidas by Stella McCartney performance tennis collection adidas
adiZero F50 Runner running shoe adidas
CC Ride running shoe adidas
Supernova Sequence 4 running shoe adidas
adiZero Trainer training shoe adidas
adiZero Crazy Light basketball shoe adidas
adiPower Predator football boot adidas
adiZero Feather tennis shoe adidas
Techfit PowerWeb men’s training apparel adidas
Terrex Faster outdoor collection adidas
adiPower Howard basketball shoe adidas
Climawarm men’s training apparel adidas
Reebok Armani ZigTech footwear Reebok
EasyTone apparel with ResisTone technology Reebok
ZigTech apparel Reebok
Premier ZigFly running shoe Reebok
ClassicLite footwear and apparel collection Reebok
RealFlex footwear Reebok
Classic ModernLite footwear Reebok
Kamikaze Classic footwear Reebok
Rockeasy Classic footwear featuring Moving Air technology Reebok
EasyTone Plus footwear Reebok
ZigTech women’s training shoe Reebok
R11 and R11 TP driver TaylorMade
Burner SuperFast 2.0 and Burner SuperFast 2.0 TP driver TaylorMade
Tour Preferred MB iron and MC iron TaylorMade
Ghost putter series TaylorMade
Climacool apparel with Coolmax Energy fabric technology adidas Golf
Climacool apparel with Soft Touch fabric technology adidas Golf
Tour360 5.0 footwear adidas Golf
Men’s golf lifestyle apparel collection Ashworth
Leucadia spikeless golf shoe Ashworth
DresSports with truWalk men’s footwear collection Rockport
Naomi women’s footwear collection Rockport
11K KFS protective equipment Reebok Hockey
Larceny goalie equipment Reebok Hockey
CCM U+ Crazy Light Alexander Ovechkin limited edition skate CCM Hockey
CCM U+ Crazy Light II stick CCM Hockey
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