Reebok 2013 Annual Report Download - page 155

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adidas Group
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2013 Annual Report
Group Management Report – Financial Review
151
2013
Subsequent Events and Outlook
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03.4
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Subsequent Events and Outlook
In 2014, despite a high degree of economic uncertainty particularly in the emerging markets, we
expect the global economy and consumer spending to increase, providing a positive backdrop for the
continued growth and expansion of the sporting goods industry. Through the extensive pipeline of new
and innovative products at all brands and the positive effects from major sporting events including the
2014 FIFA World Cup, we project top- and bottom-line improvements in our Group’s financial results
in 2014. We forecast adidas Group sales to increase at a high-single-digit rate on a currency-neutral
basis, with growth expected at all brands as well as in all regions and segments. Currency translation
is expected to have a significant negative impact on our top-line development in reported terms. Group
gross margin is forecasted to increase to a level between 49.5% and 49.8%, primarily as a result of
a more favourable pricing, product and regional sales mix, as well as improvements at the Reebok
brand. Group operating margin is forecasted to be at a level between 8.5% and 9.0%. As a result, we
project net income attributable to shareholders to be at a level between € 830 million and € 930 million.
Subsequent Events
Subsequent management changes on the Executive Board
On January 8, 2014, the Supervisory Board of adidas AG appointed Eric
Liedtke (47) to the Executive Board of adidas AG effective March 6, 2014.
Eric Liedtke will assume responsibility for Global Brands succeeding
Erich Stamminger (56), who has decided to leave the adidas AG Executive
Board on March 5, 2014, for personal reasons. Eric Liedtke, a US citizen,
joined the adidas Group in 1994 as Global Line Manager for Cross
Training in Portland/Oregon. During his 20-year career with adidas,
he has held senior management positions of increasing responsibility
at adidas America, including Director of Footwear Marketing and Vice
President Brand Marketing. In 2006, Eric Liedtke moved to the adidas
Group headquarters in Herzogenaurach, Germany, to become Senior
Vice President Global Brand Marketing. Since 2011, he has held the
position of Senior Vice President adidas Sport Performance, responsible
for all adidas sports categories globally.
Subsequent macroeconomic developments
Since the end of 2013, several currencies, in particular the Argentine
peso, Brazilian real, Turkish lira, Russian rouble, Australian dollar
and Canadian dollar, amongst others, have further depreciated versus
the euro. These changes currently add significant risk to our Group’s
reported results in euro due to negative currency translation effects.
No other subsequent changes
Since the end of 2013, there have been no other significant organisation,
socio-political, legal or financial changes which we expect to influence
our business materially going forward.
Outlook
Forward-looking statements
This Management Report contains forward-looking statements
that reflect Management’s current view with respect to the future
development of the adidas Group. The outlook is based on estimates that
we have made on the basis of all the information available to us at this
point in time. In addition, such forward-looking statements are subject
to uncertainties as described in the Risk and Opportunity Report, which
are beyond the control of the adidas Group
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SEE RISK AND OPPORTUNITY
REPORT, P. 158. In case the underlying assumptions turn out to be
incorrect or described risks or opportunities materialise, actual results
and developments may materially deviate (negatively or positively) from
those expressed by such statements. The adidas Group does not assume
any obligation to update any forward-looking statements made in this
Management Report beyond statutory disclosure obligations.