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Group Management Report – Financial Review
143
2014
/
03.3
/
adidas Group
/
2014 Annual Report
Business Performance by Segment
/
Other Businesses Performance
Other Businesses Performance
Other Businesses full year results
In 2014, revenues of Other Businesses decreased 19% on a currency-neutral basis, due to double-
digit sales declines at TaylorMade-adidas Golf. Sales at Reebok-CCM Hockey grew at a high-single-
digit rate, and revenues of Other Centrally Managed Brands increased at a double-digit rate.
Currency translation effects negatively impacted revenues in euro terms. Sales of Other Businesses
declined 21% to € 1.316 billion (2013: € 1.657 billion).
Other Businesses gross profit was down 31% to € 457 million in 2014 versus € 660 million in 2013.
Gross margin decreased 5.1 percentage points to 34.7% (2013: 39.8%). This development was mainly
due to significantly lower product margins at TaylorMade-adidas Golf as a result of ongoing efforts
to clean retail inventories, particularly in the USA, as well as the strategic decision to postpone
product launches planned for 2014.
Segmental operating expenses in Other Businesses primarily relate to expenditure for sales force
and administration as well as sales working budget expenses for TaylorMade-adidas Golf and
Reebok-CCM Hockey. In 2014, segmental operating expenses decreased 1% to € 203 million from
€ 205 million in 2013 despite restructuring charges for the streamlining of the TaylorMade-adidas
Golf organisation. Segmental operating expenses as a percentage of sales increased 3.0 percentage
points to 15.4% (2013: 12.4%).
see Table 17
see Table 17
17
/
Other Businesses at a glance 1) (€ in millions)
2014 2013 Change
Net sales 1,316 1,657 (21%)
Gross profit 457 660 (31%)
Gross margin 34.7% 39.8% (5.1pp)
Segmental operating profit 254 455 (44%)
Segmental operating margin 19.3% 27.4% (8.1pp)
1) Figures reflect continuing operations as a result of the planned divestiture of the Rockport business.
18
/
Other Businesses net sales by region 1) (€ in millions)
2014 2013 Change Change
(currency-
neutral)
Western Europe 282 291 (3%) (5%)
European Emerging Markets 23 24 (5%) 7%
North America 755 931 (19%) (18%)
Greater China 25 36 (32%) (31%)
Other Asian Markets 221 361 (39%) (35%)
Latin America 10 14 (31%) (20%)
Total 2) 1,316 1,657 (21%) (19%)
1) Figures reflect continuing operations as a result of the planned divestiture of the Rockport business.
2) Rounding differences may arise in totals.