Adidas kicked off 2012 with a strong performance, bolstered by the 2012 European Football Championship and the London Olympic Games. These events provided a significant boost, leading to a remarkable increase in sales and revenue for the company.
In the first quarter of 2012, Adidas Group experienced a 14% increase in global sales revenue at constant exchange rates, driven by robust growth across wholesale, retail, and other business segments. This growth translated to a 17% rise in sales revenue, reaching €3.824 billion compared to €3.273 billion in the same period the previous year. The company's net income surged by 38%, from €209 million to €289 million, primarily due to higher income before taxes (IBT). The Greater China region saw a 26% increase in sales, highlighting the brand's expanding market share and improved product offerings.
Adidas Group's global sales revenue surged by 14% in the first quarter of 2012, calculated at constant exchange rates. This growth was driven by double-digit increases in wholesale, retail, and other business segments. When compared to the same period in 2011, the group's sales revenue grew by 17%, reaching €3.824 billion, up from €3.273 billion.
Despite the overall positive sales performance, Adidas Group's gross profit margin fell by 0.7%. This decline was attributed to increased input costs that could not be fully offset by the higher sales revenue and the increased proportion of retail business with higher profit margins.
The group's net income attributable to shareholders rose by 38%, from €209 million in the first quarter of 2011 to €289 million in the same period in 2012. This increase was mainly due to higher income before taxes (IBT).
The Greater China region was a standout performer, with sales revenue increasing by 26% to €385 million. The core sports performance series played a significant role in driving this growth. Both dealer stores and self-operated stores saw increased consumer traffic, with comparable sales revenue in self-operated stores growing by 10% during the first quarter.
Colin Currie, General Manager of Adidas Greater China, noted, "Our brand is clearly thriving in the market, with an expanding market share. Over the past two years, our business has grown steadily. We have rigorously regulated the quality of our distribution channels and upgraded the quantity, variety, and locations of our stores. Additionally, we have enhanced our product lines, brand marketing, and visual displays to meet the increasingly complex and mature demands of Chinese consumers."
Adidas Group's strong start to 2012, fueled by major sporting events and strategic market initiatives, has set the stage for continued growth. With a focus on innovation and market expansion, the company is well-positioned to capitalize on future opportunities.
For more detailed financial information, you can visit the Adidas Group Financial Reports.
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Do You Know the Turnover of Adidas Company
There was a great increase on the turnover and profit of Adidas in the third quarter of 2012. However, its subsidiary company called Rebook encountered the problem, so it ranked lower than Nike. In the fourth quarter, it was expected that it will meet some losses.
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There was a great increase on the turnover and profit of Adidas in the third quarter of 2012. However, its subsidiary company called Rebook encountered the problem, so it ranked lower than Nike. According to the expectation, Adidas will have some losses in the fourth quarter.
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In 2012, the third quarter of Adidas's turnover and profit increased substantially. But it ranked the second place compared with Nike, for there was the problem in Rebook that was its subsidiary company. In the fourth quarter, it was expected that it will meet some losses.
