Adidas 1996 Annual Report Download - page 31

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31
EPS Performance
2.80
1.27
3.07
Q3 Q4Q2Q1
1995
5.40
EPS (Quarterly)
(DM)
m1995 and
m1996
mEPS
(Total Year)
(DM)
1996
6.93
2.65
1.14
1.75
–0.21–0.14
Net Sales
2,544
3,196 3,500
1995
4,709
199619941993
Rest of World (%)
North America (%)
Europe (%)
mNet Sales
(DM million)
73 66 67 66
19
24
22
22
8
10
11
12
Total Brand Net Sales
3,911
4,662 4,950
1995
6,083
199619941993
Licensees (%)
adidas (%)
mTotal Brand
Net Sales
(DM million)
65 69 71 77
35
31 29
23
NET SALES ANALYSIS
Net Sales increased by 35% to
DM 4.7 billion in 1996 from DM 3.5
billion in 1995. The impact of special
effects on net sales was as follows:
vConsolidation effects from new
subsidiaries contributed approxi-
mately 7% to net sales growth
vTranslation effects from convert-
ing non-Deutsche Mark denomi-
nated sales into Deutsche Mark
denominated sales enhanced
net sales by 3%
Total Brand Net Sales by adidas
and its licensees reached DM 6.1
billion in 1996, which resulted in a
growth rate of 23%. The decreasing
share of net sales by licensees rela-
tive to total brand net sales reflects
the continuing strategy to purchase
outright or to acquire a majority
shareholding in licensee operations
in countries with significant market
size and potential in order to assure
quality control over the brand.
Net sales of Footwear reached
DM 2,171 million in 1996 compared
to DM 1,790 million in 1995, achiev-
ing a 21% growth rate. Most major
sports categories contributed to the
increase in net sales in 1996 led by
the running and training categories,
which together accounted for more
than 40% ot total net sales in foot-
wear. The soccer category sustained
the high volume level achieved in
1995 for performance footwear; it
contributed approximately one fifth
of total footwear sales. Basketball
regained momentum as the contin-
ued decline in sales of the “Originals”
line was more than offset by sales
from the introduction of the perfor-
mance line Feet You Wear as well as
from sales increases in other prod
-
uct lines. The “women’s” lines con-
tinued with strong growth at around
70% in 1996.
Since the introduction of Feet You
Wear in the second half of 1996,
adidas has sold approximately
600,000 units based on the new
“Barefoot Technology”. It is expected
that the innovative Feet You Wear
range can be positioned at the top
end of the premium brand footwear
segment, providing
a platform to
enhance the core range
of adidas
footwear.
Apparel was once again a strong
performer. Net sales grew 51%
reaching DM 2,314 million in 1996
and increasing its share of total
company sales from 44% in 1995
to 49% in 1996. The all-purpose
apparel segment remained the
largest product category, represent-
ing around 70% of total apparel
sales. All-purpose grew more than
45% from its already high volume in
1995. The Workout category more
than doubled sales and the “kids’”
and “women’s” lines
also achieved
excellent growth rates.
Hardware and Other Sales in-
creased from DM 182 million to
DM 225 million growing at 24%.