Adidas 2003 Annual Report Download - page 73

CURRENCY-NEUTRAL SALES IN ASIA INCREASE 7% /// In
Asia, sales increased 7% on a currency-neutral basis. In euro
terms, sales in Region Asia were down 4% to € 1.116 billion
from € 1.166 billion in 2002. The currency-neutral gains were
driven by brand adidas, where revenues were up 9%. The
main contributors to growth at brand adidas were increased
sales in Japan, China and India. In euro terms, adidas sales in
Asia declined 3% to € 839 million in 2003 from € 867 million
in 2002. At Salomon, currency-neutral sales were down 9%.
This development is mainly related to continued poor winter
business in Japan, with alpine product sales showing a signif-
icant decline. In most other Asian markets, Salomon grew at
double-digit rates, albeit from a small base. In euros,
Salomon sales declined 18% to € 69 million in 2003 from
€84million in 2002. Currency-neutral sales of TaylorMade-
adidas Golf increased 9% due to positive development in
South Korea and in nearly all smaller markets but were partly
offset by a decline in the Japanese market. In euro terms,
sales declined 3% to € 207 million in 2003 from € 214 million
in 2002.
LATIN AMERICA SALES GROW 35% ON A CURRENCY-
NEUTRAL BASIS /// In Latin America, where revenues are
generated predominately by brand adidas, currency-neutral
sales were up 35% in 2003. In euro terms, sales grew 10% to
reach € 179 million in 2003 versus € 163 million in 2002. This
strong development was led by brand adidas, where sales
grew 34% on a currency-neutral basis and 10% in euro terms
to € 173 million in 2003 from € 158 million in 2002. The main
driver of this growth was strong performance in Brazil and
Argentina. Salomon and TaylorMade-adidas Golf, while only
minor components in overall sales with revenues of € 4 mil-
lion and € 2 million respectively in 2003, continued to grow
rapidly at double-digit rates both on a currency-neutral basis
and in euro terms.
NORTH AMERICAN CURRENCY-NEUTRAL SALES DECLINE
6% /// In North America, sales for the Group were down 6%
on a currency-neutral basis. In euro terms, this represents a
20% decline to € 1.562 billion in 2003 versus € 1.960 billion in
the prior year. Lower footwear revenues at brand adidas were
the main driver of this development and led to an 8% decline
in adidas sales on a currency-neutral basis. In euro terms,
brand adidas revenues were down 23% to € 1.067 billion in
2003 from € 1.378 billion in 2002. Salomon sales declined 5%
currency-neutral or by 18% in euro terms to € 164 million in
2003 from € 199 million in 2002. This was mainly due to the
difficult market environment for alpine products. Sales at
TaylorMade-adidas Golf developed positively with a currency-
neutral increase of 3% despite the non-renewal of the
Slazenger Golf distribution and licensing arrangement, which
had positively impacted 2002 sales in the region by approxi-
mately € 25 million. In euro terms, TaylorMade-adidas Golf
sales were down by 13% to € 331 million from € 382 million
in 2002. Excluding the Slazenger Golf sales that were included
in the prior year’s revenues, sales on a currency-neutral basis
would have increased by 9% (–8% in euros), reflecting solid
organic sales growth within this segment.
NET SALES BY REGION
Latin America 3%
Asia 18%
North America 25%
Europe 54%
NET SALES BY PRODUCT CATEGORY
Hardware 21%
Apparel 35%
Footwear 44%
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NET SALES BY QUARTER € in millions
Q1 2003 1,669
Q1 2002 1,638
Q2 2003 1,392
Q2 2002 1,507
Q3 2003 1,853
Q3 2002 1,868
Q4 2003 1,354
Q4 2002 1,511
adidas SPORT PERFORMANCE ///
WOMEN’S COMPETITION POLO TENNIS SHIRT