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Adidas said that its revenues in North America "surged in the second quarter as it works to turn round its fortunes in the world’s biggest sportswear market," according to James Shotter of the FINANCIAL TIMES. The world’s second largest sportswear group by sales "has been trying to make up ground in North America after losing its number two position" to Under Armour in '14, and falling further behind Nike. In the three months to the end of June, adidas posted the fastest growth of the trio, with its sales in the region climbing 22.6% to €788M ($877M), "allowing it to overtake Under Armour again." Under Armour said last week that its sales had risen 21.5% to $827M ($921M), while "Nike’s sales were flat" at $3.7B ($4.1B) in the three months to the end of May. Adidas also "posted rapid growth in western Europe," with sales jumping 26% to €1.2B ($1.3B), and in greater China, where its revenue rose 21% to €685M ($763M). However, sales in Russia and Latin America both fell as adidas "was hit by currency fluctuations." The German group said in an unscheduled announcement last week that its overall sales in the second quarter were 21% higher "than in the same period a year earlier." Profits doubled to €291M ($324M), "thanks partly to a one-off gain from the termination of a sponsorship deal" with Chelsea. However, while analysts said that the "overall results were solid, some found the development of Adidas’s gross margin" -- which was 48.3% last year, and which the group says will come in between 48% and 48.3% this year -- was "less impressive." MainFirst analyst John Guy said, "The gross margin guidance revision was expected but the quantum of the revision looks a little disappointing at -30bp to flat given the strong channel and product mix adidas is enjoying this year" (
FT, 8/4).
