Adidas 2003 Annual Report Download - page 91

Download and view the complete annual report

Please find page 91 of the 2003 Adidas annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 170

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170

87
adidas DEVELOPMENT IN NORTH AMERICA
CURRENCY-NEUTRAL SALES IN NORTH AMERICA DECLINE
8% /// On a currency-neutral basis, adidas sales in North
America declined 8%. In euro terms, revenues decreased 23%
in 2003 to € 1.067 billion from € 1.378 billion in the prior year.
Difficult market conditions in the first half of the year, tough
comparisons with prior year results in the second half of the
year and lower demand for many adidas product lines
throughout the year were the reasons for this weak develop-
ment. This led to a significantly higher portion of clearance
sales than in the prior year.
NORTH AMERICAN BUSINESS TO BE STABILIZED IN 2004 ///
Year-end backlogs for North America decreased 18% on a
currency-neutral basis or 31% in euro terms. From a product
perspective, footwear orders declined by 26% currency-
neutral (–38% in euros) as a result of lower demand in all
major product categories except football. Apparel backlogs
declined 2% in currency-neutral terms and 17% in euros.
While this figure is negative, it shows improvement versus
the prior quarter and reflects solid improvement in the
training category. The year-end backlog development in
North America continued to reflect lower demand for per-
formance products, a negative trend that began in 2002.
However, in light of recent market trends, retailer commen-
tary and major sporting events scheduled for 2004, we are
confident that we will be able to stabilize our adidas business
in North America during the year.
adidas NET SALES IN NORTH AMERICA BY QUARTER € in millions
Q1 2003 306
Q1 2002 346
Q2 2003 268
Q2 2002 342
Q3 2003 293
Q3 2002 363
Q4 2003 200
Q4 2002 326
adidas ORDER BACKLOGS IN NORTH AMERICA BY PRODUCT CATEGORY1)
change in %
In € Currency-
neutral
Footwear (38) (26)
Apparel (17) (2)
Total (31) (18)
1)Versus the prior year