The German sport apparel leader Adidas Group experienced a fruitful third quarter in 2015 as its revenue soared 18% in three months that ended on 30th September 2015 as compared to growth in same period last year.
In euro terms the revenue summed up to €4.758 billion from €4.044 billion last year third same period. The Year on Year revenue have perked up to 13% as a result of this current pacing momentum of Adidas. The growth comprises of ascending position of Adidas Brand, Reebok as well as Taylormade-Adidas Golf.
The currency-neutral revenue for Adidas brand grew 14% driven by double-digit sales increases in Western Europe, North America, Greater China, Latin America and MEAA. While in Reebok brand, currency-neutral sales rose much slower at 3 per cent versus the prior year’s third quarter, while currency-neutral sales at Taylormade-Adidas Golf increased 6 per cent. The group gross profit surged by 20% to €2.304 billion in the third quarter this year as compared to last year. The Group’s gross margin increased 1.0 bps to 48.4 per cent from 47.4 per cent led by the positive effects from a more favourable pricing and channel mix, partly offset by higher input costs and negative currency effects.
Other operating expenses expanded 18 per cent to €1.845 billion in the reporting quarter compared to €1.565 billion in the same quarter of earlier year. “This reflects an increase in sales and marketing investments as well as higher operating overhead costs,” a press release from Adidas informed. As a percentage of sales, other operating expenses rose marginally by 0.1 bps to 38.8 per cent vis-à-vis 38.7 per cent in the third quarter of 2015. In the quarter under review, operating profit climbed 26 per cent to €505 million from €399 million in last year’s corresponding period, which represents an operating margin of 10.6 per cent, up 0.7 bps year over year.“This development was driven by the increase in gross margin, which more than offset higher operating expenses as a percentage of sales,” the German sports goods and sportswear marketer added.
