Adidas'S 2014 Annual Results: Net Profit Of 564 Million Euros

Following the sale of its brand name 280 million dollars in January, Adidas announced its annual performance report for 2014.

Data show that in 2014, despite the negative impact of the exchange rate on Euro settlement sales revenue, Adidas group's revenue rose from 14 billion 203 million euros in 2013 to 14 billion 534 million euros in 2014, an increase of 2% over the same period last year, while the exchange rate remained unchanged at 6%.

It is reported that the main brand Adidas sales achieved two digit growth, Reebok achieved a median digits growth.

As sales volume of Adidas and Reebok both increased by two digits, the retail sales increased by 21% compared with the previous year.

In the mail sent to reporters, Adidas group chief executive Herbert Heiner (Herbert Hainer) said that although 2014 was a year of ups and downs, it eventually achieved the adjusted business objectives.

"In the fourth quarter, our sales in Western Europe, Greater China, European emerging markets and Latin America all achieved two digit growth, indicating that the growth momentum of Adidas and Reebok is irresistible."

The reporter noted that in the Greater China market, which he always attached importance to, the sales volume of Adidas group increased by 10% to 1 billion 811 million euros.

In the fourth quarter, sales in the Greater China region increased by 11%, thanks to the promotion of Adidas sports performance series and sports fashion series.

Compared with the 7% growth in 2013, sales in the Greater China region are good.

However, even though sales continued to grow, Adidas continued to slide in profits.

In 2014, its net profit was 564 million euros, down 27% from 773 million euros last year.

It is worth mentioning that, according to the annual derogation test results, Adidas group's reputation in December 31, 2014 has been reduced, and the pre tax expenditure is 78 million euros (2013 level: 52 million euros).

Adidas said that the cost was mainly related to the retail cash income area Russia / CIS CIS countries, so the group's goodwill in these countries was completely impaired, and the main reason for the loss was the serious depreciation of the Russian rouble.

In 2014, the gross margin of Adidas group dropped by 1.7 percentage points to 47.6% (2013 level: 49.3%).

Adidas group points out that sales in 2015 are expected to achieve medium digit growth.

In addition, it expects the gross profit margin of the group to drop to 47.5-48.5% (2014: 47.6%).

"Although the economic outlook and consumption level of Russia / CIS are uncertain, the consumer confidence in most parts of the world is on the rise, which will have a positive impact on the growth of sales."

Just recently, the Wall Street Journal reported that Dick's Sporting Goods, an American sporting goods retailer, announced that it would make room for Adidas's and Reebok's women's wear products for Underwood's brand Calia.

Calia's products include tight pants, blouses, sports underwear and headbands.

Not only that, Dick's Sporting Goods will also become the exclusive seller of Calia.

In the industry's view,

And Reebok's shelves will further expand the gap between Adidas group and its competitors, Nike and Under Armour.

In the Chinese market, the Chinese Super League won the title and 12 years of national football.

Nike is still challenging Adidas's soccer position and market share.

Prior to that, the national football Asia Cup was overheated and the group won the two winning streak ahead of time, giving a new start to the new sponsor Nike, which is a "treatment" that Adidas did not enjoy as a sponsor.

The key Road Sports Consulting Co., Ltd., CEO Zhang Qing, said Adidas's share was in the main battleground.

Nibbling is mainly the "DNA" decision of two enterprises.

He pointed out that Adidas has always emphasized the R & D investment on equipment in its dedicated market, while Nike is mainly light asset operation, essentially a marketing company, which is more aggressive in the face of mobile Internet.

"Trying to use the old mode to create a different future is doomed," Adidas said.

An industry veteran who declined to be named pointed out.

However, the analysts also pointed out that in recent years, Adidas has made great progress in developing and opening up new retail mode in China. The latest stores include women's stores, Homecourt store in Sanlitun Adidas brand center in Beijing, Neighbourhood store in Adidas sports classic series, and the first footwear franchise store in China.

It is reported that at present, Adidas operates more than 80 retail stores across the country.

Adidas told reporters that it will continue to focus on the introduction of a new differentiated retail mode that is consistent with the needs, expectations and disposable income of consumers.