Adidas 2001 Annual Report Download - page 39

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34 MD&A
Asian Sales Reach €1 Billion
Asia was the fastest growing region for the Group.
Sales increased 15% to reach €1 billion for the
first time. On a currency-neutral basis, this increase
was 25% . adidas sales increased 12% , driven by
strong growth of adidas in Japan, which accelerated
throughout the year in anticipation of the 2002 FIFA
World Cup™ football championship. TaylorMade-
adidas Golf sales doubled in the region for the second
year in a row with substantial increases in Japan
and South Korea. Salomon sales declined in Asia as
a result of poor winter business and the over-stocked
outdoor footwear market.
North American Sales Develop As Anticipated
In North America, sales for the Group were down
5% to € 1.8 billion in 2001. This is in line with
Management expectations and represents a decrease
of 7% in currency-neutral terms. Brand adidas was
the main contributor to this decline with sales down
8% , as the brand’s efforts to target athletic specialty
retailers more aggressively led to initial declines in
the volume sales channel. TaylorMade-adidas Golf
sales remained stable, despite challenging market
conditions that resulted in significant declines for
major competitors. Salomon sales grew 12% , driven
by the successful reintroduction of inline skates in
North America.
Latin America Sales Improve
Despite Tough Market Conditions
In Latin America, sales increased 4% to €178 million.
On a currency-neutral basis, this increase was 11% .
After a strong first half year, economic pressure in
Argentina dampened overall development in the
region. Sales for adidas increased 3% , driven by higher
sales in Brazil and Colombia. Salomon and TaylorMade-
adidas Golf products, while only a minor component
in overall sales, continued to grow rapidly.
Licensee Sales Increase
Net licensee sales grew 4% to €642 million in 2001.
This improvement was due to increased sales by
product licensees in Europe, showing the strength
of the adidas brand name in the region.
Gross Profit
(euros in millions)
1,437
2,124
2,352
2,528
2,601
1997
1998
1999
2000
2001
Gross Margin
(in %)
41.9
41.9
43.9
43.3
42.6
1997
1998
1999
2000
2001
Gross Profit by Brand*
TaylorMade-adidas Golf
adidas
12%
11%
Salomon
71%
Target range 41 to 43%
* Difference in total due to HQ/Consolidation