Adidas 2003 Annual Report Download - page 35

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adidas-Salomon SHARE PRICE REMAINS STABLE
IN Q1 /// Uncertainties surrounding the geo-political
situation in the Middle East and a further deterioration
of the global economic outlook put stock markets under
pressure during the first three months of the year. The
adidas-Salomon share also declined in the first quarter
and reached its year low of € 69.53 in February after
several US athletic specialty retailers released disap-
pointing quarterly results. This decline in the adidas-
Salomon share price were partially offset by increases
in March, which were mainly due to our positive final
2002 full year results and hopes for a quick resolution
to the war in Iraq.
US BACKLOG DEVELOPMENT IMPACTS SHARE PRICE
IN Q2 /// While weak economic conditions continued at
the beginning of the second quarter, the sooner-than-
expected end of the war in Iraq led to improvements for
both the equity market and the adidas-Salomon share.
However, this share price appreciation was quickly
eliminated after the release of our first quarter results,
which included flat adidas backlog development in North
America and disappointed the market given the double-
digit growth rates in previous quarters.
SHARE PRICE ADVANCES IN Q3 /// During the third
quarter, the improved economic outlook due to interest
rate reductions in the USA and Europe supported the
general stock market recovery further. This development
was also underpinned by optimism surrounding govern-
ment reforms as well as increased consumer confidence
both in the USA and Europe. The performance of the
adidas-Salomon share remained depressed at the
beginning of the quarter. While the announcement of
our convertible bond offering led to strong short-term
increases, information concerning further backlog
deterioration in North America drove a share price
decline at the end of September.
STRONG SHARE PRICE APPRECIATION IN Q4 /// Most
major indices continued to advance throughout the
fourth quarter due to the improving general global
economic conditions as well as increases in both con-
sumer and business confidence. The adidas-Salomon
share price also grew strongly during the three-month
period driven by strong quarterly results, the further
appreciating euro versus the US dollar and the positive
outlook for retailers both in the USA and Europe during
the holiday season. As a result, the share price reached
its year high of € 91.36 on December 29. At the end of
the year, the share price stood at € 90.30, representing
an improvement of 10% compared to the end of 2002.
The DAX-30 improved 37% during the year and the
MSCI World Textiles, Apparel & Luxury Goods Index
advanced 44% during the 12-month period.
31
WEEKLY SHARE PRICE DEVELOPMENT1)
140
120
100
80
60
Dec. 31 Dec. 31
2002 2003
adidas-Salomon
DAX-30
MSCI World Textiles, Apparel & Luxury Goods
1)Index: December 31, 2002 = 100
HIGH AND LOW SHARE PRICES PER MONTH
90
80
70
60
Jan. 2003 Dec. 2003
30-day moving average
High and low share prices per month
83.4071.46
76.5569.53
82.9172.26
86.3277.10
82.6173.94
79.2371.85
74.9071.51
76.2770.25
78.0874.58
80.7875.53
86.2580.72
91.3684.82