Reebok 2015 Annual Report Download - page 152

GROUP MANAGEMENT REPORT – FINANCIAL REVIEW
Subsequent Events and Outlook
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SUBSEQUENT EVENTS
AND OUTLOOK
In 2016, despite ongoing uncertainties regarding the economic outlook in the emerging economies,
in particular China, we expect the global economy and consumer spending to grow, providing a
positive backdrop for the continued growth and expansion of the sporting goods industry. Through
our extensive pipeline of new and innovative products, increased brand-building activities and the
positive effects from major sporting events, including the UEFA EURO 2016, we project significant
top- and bottom-line improvements in our Group’s financial results in 2016. We forecast adidas Group
sales to increase at a rate between 10% and 12% on a currency-neutral basis, driven by the strong
momentum at both adidas and Reebok, with growth expected across nearly all market segments.
While less favourable hedging rates and higher input costs are projected to weigh on the Group’s
gross margin development in 2016, these negative effects will be largely compensated by the positive
effects from price increases as well as improvements in the channel, regional and product mix. As
a result, Group gross margin is forecasted to be at a level between 47.3% and 47.8%. Nevertheless,
Group operating margin excluding goodwill impairment is expected to be at least stable compared
to the prior year level of 6.5%, due to lower other operating expenses as a percentage of sales. As a
result, we project net income from continuing operations excluding goodwill impairment to increase
at a rate between 10% and 12% to a level of around € 800 million.
SUBSEQUENT EVENTS
KASPER RORSTEDTO SUCCEED HERBERT HAINER AS CEO OF ADIDASAG
On January 18, 2016, the Supervisory Board of adidas AG resolved upon the successor for the long-standing
adidas AG CEO Herbert Hainer. Effective August 1, 2016, Kasper Rorsted is appointed as ordinary member
of the Executive Board and effective October 1, 2016 as CEO of adidas AG. Herbert Hainer will relinquish
his Executive Board mandate effective September 30, 2016.
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 which are beyond the control of the adidas Group. 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.
see Risk and Opportunity
Report, p. 156