Reebok 2015 Annual Report Download - page 155

GROUP MANAGEMENT REPORT – FINANCIAL REVIEW
Subsequent Events and Outlook
151
3
ADIDAS GROUP CURRENCY-NEUTRAL SALESTO INCREASE
ATA RATE BETWEEN 10% AND 12% IN 2016
We expect adidas Group sales to increase at a rate between 10% and 12% on a currency-neutral basis in
2016. Despite ongoing uncertainties regarding the economic outlook in the emerging economies, Group
sales development will be favourably impacted by rising consumer spending on sporting goods, supported by
the ongoing robust athleisure trend as well as increased health awareness and sports participation in most
geographical areas. In addition, this year’s major sporting events will provide a positive stimulus to Group
sales. As Official Sponsor of the UEFA EURO 2016 in France, the adidas brand will benefit from additional
sales in the football category. Furthermore, the Rio 2016 Olympic Games will provide an excellent platform
for the adidas brand to increase its overall presence across the region, and also to present its performance
credentials to consumers globally. At Reebok, we project the brand to continue its growth path in 2016,
leveraging its strong positioning in ‘Tough Fitness’ and addressing the most relevant fitness movements in
the sporting goods industry. The sales development at TaylorMade-adidas Golf is expected to be impacted
by continued structural challenges in the industry and, as part of the restructuring programme initiated
during the course of 2015, the resizing of our golf business.
see Glossary, p. 260
01ADIDAS GROUP 2016 OUTLOOK
Currency-neutral sales development (in %):
adidas Group to increase at a rate between 10% and 12%
Western Europe 1double-digit rate increase
North America 1double-digit rate increase
Greater China 1double-digit rate increase
Russia/CIS 1around prior year level
Latin America 1mid- to high-single-digit rate increase
Japan 1high-single-digit rate increase
MEAA 1high-single-digit rate increase
Other Businesses below prior year level
TaylorMade-adidas Golf below prior year level
Reebok-CCM Hockey mid-single-digit rate increase
Gross margin 47.3% to 47.8%
Other operating expenses in % of net sales below prior year level
Operating margin to remain at least stable versus prior year level
Net income from continuing operations to increase at a rate between 10% and 12% to around € 800 million
Average operating working capital in % of net sales around prior year level
Capital expenditure around € 750 million
Store base net increase of around 100 stores
Gross borrowings moderate decline
1 Combined sales of adidas and Reebok.