Reebok 2015 Annual Report Download - page 114

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110
3
GROUP MANAGEMENT REPORT – FINANCIAL REVIEW
Group Business Performance – Economic and Sector Development
In North America, the sporting goods industry posted a robust performance, benefiting from rising real
disposable income and low inflationary pressure within the region. From a category perspective, casual
athletic footwear continued to be in strong demand, fuelled by sales growth both in classics and in lifestyle
silhouettes, outperforming other categories. While basketball footwear posted modest growth driven by
lifestyle basketball, running footwear sales benefited mainly from fashion styles. In addition, sales in
sports apparel saw a modest decline and were negatively impacted by unfavourable weather conditions.
Although further signs of a slow recovery in the golf market appeared during the second half of 2015 due
to unseasonably warm weather and new product introductions, structural changes continued to persist.
In Asia, low inflationary pressures and wage growth bolstered disposable income and consumer spending,
promoting the expansion of the sporting goods industry. This trend was particularly evident in China,
supporting healthy industry growth, especially in the lower-tier cities. Sporting goods sales in Japan saw
improvements as the year developed, driven by stronger consumer spending and domestic demand. In
India, the size of the sector continued to expand at a strong pace.
The sporting goods industry in Latin America grew only slightly in 2015, as low unemployment levels and
wage increases were partially offset by high inflationary pressures and subdued consumer spending. In
particular Brazil, a market which benefited the most in the prior year from the 2014 FIFA World Cup, was
negatively impacted by these developments.
05EXCHANGE RATE DEVELOPMENT 1€ 1 EQUALS
Average
rate 2014
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Average
rate 2015
USD 1.3296 1.0759 1.1189 1.1203 1.0887 1.1101
GBP 0.8066 0.7273 0.7114 0.7385 0.7340 0.7259
JPY 140.44 128.95 137.01 134.69 131.07 134.42
RUB 50.737 62.902 62.126 74.205 79.347 67.682
CNY 8.1919 6.6084 6.8405 7.1266 7.0696 6.9721
1 Spot rates at quarter-end.
06 2015 OIL PRICE DEVELOPMENT 1IN US $ PER BARREL
| Jan. 1, 2015 Dec. 31, 2015 |
70
50
30
1 West Texas Intermediate Cushing crude oil. Source: Bloomberg.