Adidas 2002 Annual Report Download - page 66

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64 REPORTING MANAGEMENT DISCUSSION & ANALYSIS /// GROUP BUSINESS PERFORMANCE
ASIAN SALES REACH € 1.2 BILLION /// Asia was again the
fastest growing region for the Group. Sales increased 16% to
reach € 1.2 billion in 2002 (2001: € 1.0 billion). On a currency-
neutral basis, this increase was 23%. adidas sales grew 20%
from € 726 million in 2001 to € 867 million in 2002, driven
by vigorous growth of adidas in Japan, which benefited from
the positive response to the 2002 FIFA World Cup™. adidas
sales in South Korea, China, Hong Kong, Taiwan and Malaysia
also continued to grow solidly. TaylorMade-adidas Golf again
grew strongly (+24%) with substantial sales increases coming
from South Korea. Salomon sales declined 25% in Asia, as a
result of continued poor winter business and the over-stocked
outdoor footwear market in Japan. In other Asian markets, the
Salomon brand grew at double-digit rates, albeit from a small
base.
SALES IN EUROPE GROW 4% /// Sales for adidas-Salomon
in Europe grew 4% from € 3.1 billion to € 3.2 billion. On a
currency-neutral basis, this increase was 5%. All brands
delivered positive growth. Sales at brand adidas grew 4%
from € 2.6 billion in 2001 to € 2.7 billion in 2002, primarily
as a result of solid performance in Italy, UK, Spain and
France, driven by our strong footwear range. Emerging
market sales also continued to grow substantially, supported
in particular by sales growth in Russia and the Middle East.
TaylorMade-adidas Golf was also one of the main drivers of
growth in Europe, with sales up 34% from € 83 million in
2001 to € 111 million in 2002 following the excellent reception
of the new R500 Series drivers. Salomon also grew, with
European sales up 3%, driven largely by increases in the ski
boot and nordic categories in an otherwise challenging winter
market. In addition, Mavic sales grew at double-digit rates.
LATIN AMERICA SALES GROW STRONGLY ON A CURRENCY-
NEUTRAL BASIS /// In Latin America, where revenues are
generated predominately by brand adidas, sales declined 9%
in 2002 to € 163 million (2001: € 178 million). However, this
was due to the negative currency developments in the region.
On a currency-neutral basis, sales actually grew 31% as a
result of higher sales in Argentina, Brazil, Chile and Mexico.
Salomon and TaylorMade-adidas Golf, while only minor
components in overall sales, continued to grow rapidly on a
currency-neutral basis.
FOOTWEAR SALES UP 8% /// Net sales of footwear within the
adidas-Salomon Group grew 8% to reach € 2.9 billion in 2002
(2001: € 2.7 billion). The strongest growth came from the
adidas Sport Performance basketball and football categories
as well as the Sport Heritage division, where sales increased
by 36%, 15% and 22% respectively. Our new footwear tech-
nologies – ClimaCool®and a3® – also helped the running
category grow 7% versus the prior year. Footwear now
generates 44% of total Group sales, reaffirming its position
as adidas-Salomon’s most important product category.
NET SALES BY REGION
49% EuropeLatin America 3%
Asia 18%
North America 30%
NET SALES BY PRODUCT CATEGORY
44% FootwearHardware 21%
Apparel 35%
SALOMON ///
NORDIC CARBON PRO SKATE