Reebok 2014 Annual Report Download - page 148

144
2014
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03.3
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adidas Group
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2014 Annual Report
Group Management Report – Financial Review
Business Performance by Segment
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Other Businesses Performance
Segmental operating profit decreased 44% to € 254 million in 2014 versus € 455 million in the
prior year. Segmental operating margin was down 8.1 percentage points to 19.3% from 27.4% in
2013. This was a result of the gross margin decrease as well as the negative impact from higher
segmental operating expenses as a percentage of sales.
Other Businesses development by region
In 2014, currency-neutral sales of Other Businesses decreased in most regions. Revenues in
Western Europe were down 5% on a currency-neutral basis due to double-digit sales declines at
TaylorMade-adidas Golf, which more than offset double-digit sales increases at Other Centrally
Managed Brands. Revenues at Reebok-CCM Hockey decreased at a low-single-digit rate. Sales
in European Emerging Markets increased 7% on a currency-neutral basis. Strong double-digit
sales growth at Reebok-CCM Hockey was partly offset by sales declines at TaylorMade-adidas
Golf. Currency-neutral sales in North America were down 18%, due to double-digit decreases at
TaylorMade-adidas Golf. Revenues at Reebok-CCM Hockey increased at a high-single-digit rate,
while sales at Other Centrally Managed Brands grew at a double-digit rate. Revenues in Greater
China, Other Asian Markets and Latin America decreased 31%, 35% and 20%, respectively, due to
double-digit sales decreases at TaylorMade-adidas Golf. Currency translation effects had a mixed
impact on regional sales in euro terms.
Other Businesses development by segment
In 2014, TaylorMade-adidas Golf revenues decreased 28% on a currency-neutral basis. The
pronounced decrease is due to TaylorMade-adidas Golf’s strategic decision to clean retail
inventories in the golf market and postpone product launches planned for 2014. This resulted in
double-digit sales declines in metalwoods and irons in 2014. Currency translation effects negatively
impacted TaylorMade-adidas Golf sales in euro terms. Revenues decreased 29% to € 913 million
from € 1.285 billion in the prior year.
see Table 17
see Table 18
20
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Other Businesses net sales by segment
1)
1) Figures reflect continuing operations as a result of the planned divestiture of the
Rockport business.
1
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69% TaylorMade-adidas Golf
2
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20% Reebok-CCM Hockey
3
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10% Other Centrally Managed
Brands
19
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Other Businesses net sales by region 1)
1) Figures reflect continuing operations as a result of the planned divestiture of the
Rockport business.
1
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57% North America
2
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21% Western Europe
3
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17% Other Asian Markets
4
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2% European Emerging Markets
5
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2% Greater China
6
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1% Latin America
2014
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2014
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