Adidas 2001 Annual Report Download - page 38

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33
MD&A
strongly to increased promotional activities at the
retail level. Despite these negative issues in North
America and Asia, the sporting goods market in
Europe continued to grow as price increases neces-
sary to compensate for the weak euro were largely
accepted by retailers. Most growth in Europe in 2001
was generated through price increases.
adidas-Salomon Sales Reach Record Level of €6.1 Billion
Consolidated net sales for the Group grew 5% to reach
€6.1 billion in 2001. This is the highest level in the
Group’s history and the seventh year of continued
growth since going public in 1995. This improvement
is the result of higher sales being generated by all brands.
TaylorMade-adidas Golf posted the most substantial
gains, increasing 24% versus the prior year. adidas
sales were up 3% and Salomon sales increased 2% .
Regionally, Asia and Europe delivered strong improve-
ments, with sales increasing 15% and 7% respectively.
Sales in North America declined 5% and grew in Latin
America by 4% . On a currency-neutral basis, Group
sales increased 6% .
Footwear Sales Up 5%
Net sales of footwear within the adidas-Salomon Group
grew 5% to reach €2.7 billion. Strongest growth came
from Originals and the Forever Sport basketball
category, where sales increased by more than 50%
and 30% respectively. Footwear now generates
44% of total Group sales, reaffirming its position as
adidas-Salomon’s most important product category.
Apparel Sales Improve 2%
Apparel sales increased 2% to €2.2 billion, marking the
first positive development in this product category in
three years. New apparel collections from the adidas
Original division and Salomon had strong initial
launches. In addition, adidas apparel in technically-
oriented Forever Sport categories such as running and
basketball each improved more than 25% versus the
prior year. Apparel contributed 36% of total Group sales
in 2001.
Hardware Sales Grow 9%
Hardware sales, which primarily came from the
TaylorMade and Salomon brands, again recorded the
strongest growth among product categories, up 9% to
€1.2 billion. This reaffirms adidas-Salomon’s position
as the number one global supplier of sports hardware
products, as measured by total net sales. Hardware sales
represent 20% of total Group sales.
Sales in Europe Beat Target
Sales for adidas-Salomon in Europe outpaced the Group
target of 3 to 5% growth. Positive sales performance
was generated by all brands, driving an overall increase
in the region of 7% to €3.1 billion. Sales at brand
adidas grew 7% , primarily as a result of strong perfor-
mance in the region’s largest markets Germany, the
UK and France. TaylorMade-adidas Golf was also one
of the main drivers of growth in Europe, with sales
up 26% following the excellent reception of the
new 300 Series and successful repositioning of the
TaylorMade brand. Salomon also grew, with European
sales up 4% , driven largely by double-digit growth
in the apparel and ski boot categories.
Net Sales by Product Category
Apparel
Hardware
44%
36%
Footwear
20%
adidas-Salomon Footwear Net Sales by Region
% of
(euros in millions) 2001 Total
Europe 1,253 47
North America 864 33
Asia 390 15
Latin America 125 5
Total* 2,650 100
* Difference in total due to HQ/Consolidation
adidas-Salomon Apparel Net Sales by Region
% of
(euros in millions) 2001 Total
Europe 1,314 59
North America 521 24
Asia 334 15
Latin America 42 2
Total* 2,212 100
* Difference in total due to HQ/Consolidation