Adidas 2003 Annual Report Download - page 72

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GROUP BUSINESS PERFORMANCE
adidas-Salomon CURRENCY-NEUTRAL SALES GROW 5% ///
Currency-neutral sales for the Group grew by 5% with
increased sales at all brands and in all regions except North
America. In euro terms, however, Group sales declined by
4% to € 6.267 billion in 2003 from € 6.523 billion in 2002, due
to the strong appreciation of the euro against most major
currencies.
BRAND adidas LEADS SEGMENT GROWTH WITH A 5%
CURRENCY-NEUTRAL SALES IMPROVEMENT /// From a brand
perspective, adidas sales grew 5% on a currency-neutral
basis. In euro terms, sales declined by 3% to € 4.950 billion
from € 5.105 billion in 2002. Drivers of the currency-neutral
growth were the Sport Performance running and training
categories helped by evolutions of our successful technolo-
gies ClimaCool®and a3®. Currency-neutral sales in the Sport
Heritage division decreased by 4% (–11% in euros), reflecting
a decline in footwear products which could only be partly
offset by strong increases in apparel sales, albeit from a
small base. Salomon sales increased 2% currency-neutral,
mainly as a result of increased sales of Mavic cycling compo-
nents, outdoor footwear and Salomon apparel. This increase
was partly offset by lower winter product and inline skate
revenues. Sales in euro terms were down by 4% to € 658 mil-
lion in 2003 from € 684 million in 2002. TaylorMade-adidas
Golf sales grew by 4% on a currency-neutral basis with strong
increases in the iron and putter categories as well as at
adidas Golf more than offsetting lower metalwood and golf
ball sales. In euro terms, TaylorMade-adidas Golf sales
declined by 10% to € 637 million from € 707 million in 2002.
CURRENCY-NEUTRAL SALES IN EUROPE UP 8% /// Sales for
adidas-Salomon in Europe grew 8% on a currency-neutral
basis. In euro terms, sales were up 5% to € 3.365 billion in
2003 from € 3.200 billion in 2002. This growth was driven by
adidas and Salomon. Sales at brand adidas grew 9% on a
currency-neutral basis and 6% in euro terms to € 2.851 billion
in 2003 from € 2.694 billion in 2002, primarily as a result of
strong growth in Italy and the UK as well as the continued
solid performance in France and the emerging markets.
Salomon also grew, with European sales up 7% in 2003 on a
currency-neutral basis and sales in euros up 6% to € 418 mil-
lion in 2003 (2002: € 395 million). This increase was driven by
sales improvements in all major countries such as France,
Italy, Switzerland, Sweden and Germany. Currency-neutral
sales for TaylorMade-adidas Golf were down 5% mainly due
to a decline in the UK. This represents a decrease of 14% in
euro terms to € 96 million in 2003 from € 111 million in 2002.
68 REPORTING GROUP MANAGEMENT REPORT /// GROUP BUSINESS PERFORMANCE
NET SALES € in millions
1999 5,354
2000 5,835
2001 6,112
2002 6,523
2003 6,267
NET SALES GROWTH BY BRAND AND REGION1) in %
Europe North Asia Latin Total
America America
adidas 6 (23) (3) 10 (3)
Salomon 6 (18) (18) 12 (4)
TaylorMade-adidas Golf (14) (13) (3) 61 (10)
Total 5(20) (4) 10 (4)
1)Versus the prior year
CURRENCY-NEUTRAL NET SALES GROWTH BY BRAND AND REGION1) in %
Europe North Asia Latin Total
America America
adidas 9(8) 9 34 5
Salomon 7(5) (9) 33 2
TaylorMade-adidas Golf (5) 3 9 101 4
Total 8(6) 7 35 5
1)Versus the prior year