Emerging Markets to Drive adidas Group Sales
Based on our strength in innovation, operational excellence
and regional diversification, we are confident that the Group’s
net sales increase in 2007 will again exceed growth rates of
the global economy. We also expect Group sales growth to
be at least in line with the overall development of the sporting
goods sector. Revenues will grow in all regions, yielding
another record year in sales. In particular, sales in Asia and
Latin America are expected to grow at double-digit rates in
currency-neutral terms, above both economic and industry
development, due to our strong brand recognition and growing
distribution infrastructure. Low-single-digit growth rates
are expected in Europe and North America due to difficult
comparables, slower economic development and intensified
competition at retail.
Stronger Sales Momentum in Second Half of 2007
We expect revenue growth to be weighted towards the second
half of 2007 owing to difficult comparisons in the first half of
the year. This is a result of the strong growth in all regions
in the prior year and the positive sales impact from adidas’
strong presence around the 2006 FIFA World Cup™. Growth
rates in the second half of 2007 are expected to accelerate,
driven by our product launch schedule.
Mid-Single-Digit Sales Growth Expected at Brand adidas
We project mid-single-digit currency-neutral sales growth for
adidas in 2007. All three adidas divisions are expected to grow
with the strongest improvements anticipated in the Sport
Performance
running, women’s and basketball categories,
supported by our fully-integrated “Impossible is Nothing”
brand campaign. We have a compelling pipeline of product
launches in running, including additions to our core adiStar,
SuperNova and Response families featuring our ForMotion™
technology as well as the next generation of our BOUNCE™
running shoes. We also expect substantial growth in our women’s
business led by our collaboration with Stella McCartney
and the continued momentum of our Adilibria concept. We
will also launch our most innovative functional line of performance
apparel to date, the adidas TechFit™ Powerweb. For
Europe and North America, own-retail and at-once business,
which are not included in order backlogs, will be positive top-line
growth drivers. However, our new distribution policy in
the UK announced in 2006 to improve the positioning of our
product at retail will temper European development. In Asia,
we are again targeting significant sales growth for brand
adidas in 2007, mainly driven by strong increases in China,
Korea and Southeast Asia. In Latin America, year-end customer
feedback points to continued solid growth prospects
for 2007.
2007 Product Launch Schedule
| Product |
Brand | Launch Date |
| adiStar ForMotion™ Control running shoe |
adidas | January |
| adidas TechFit™ Powerweb running and training apparel |
adidas | January |
| Stella McCartney “Gym/Yoga” apparel collection |
adidas | March |
| adiStar ForMotion™ Cushion running shoe |
adidas | June/July |
| Adilibria women’s training apparel |
adidas | January/July |
| “Materials of the World” Sport Heritage collection |
adidas | October |
| Team Signature basketball shoe collection |
adidas | November |
| UEFA EURO 2008™ national team jerseys – home kit |
adidas | November |
| UEFA EURO 2008™ Match Ball |
adidas | December |
| PUMP Paris Trainer running shoe |
Reebok | February |
| Scarlett “Hearts” Rbk footwear and apparel collection |
Reebok | April/July |
| Freestyle footwear and apparel collection |
Reebok | March |
| Trinity KFS II running shoe |
Reebok | July |
| HATANA women’s running shoe |
Reebok | July |
| MLB Fan Gear apparel collection |
Reebok | July |
| NFL Zero Degrees apparel collection |
Reebok | September |
| ANSWER XI basketball shoe |
Reebok | November |
| Rbk EDGE Uniform System™ hockey apparel |
Reebok-CCM Hockey | January |
| Footwear collection featuring adidas TORSION® system |
Rockport | September |
| r7® SuperQuad driver | TaylorMade-adidas Golf | February |
| Burner® driver |
TaylorMade-adidas Golf | February |
| POWERBAND adidas Golf shoe |
TaylorMade-adidas Golf | March |
| Maxfli Tour Fire golf ball |
TaylorMade-adidas Golf | May |
